INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.
NPTN (market cap is $0.425B was $0.194B)
Neophotonics produces and sells electro-optic components like switches that enable high-speed communications, typically experienced by people transmitting large datasets, but more easily envisioned as streaming movies or video calls/conferencing. The market should be growing, and the company has some of the fastest switches available.
Unfortunately for the company, trade sanctions against China have been a significant setback. The stock may continue to be depressed until trade wars subside. One consequence may be that customers switch to new supplies in the meantime. The stock has recovered, somewhat; but has yet to return to the rise it saw in 2015.
I continue to hold based on the industry growth but don’t expect to buy more without better news from the company. In the meantime, its future is somewhat dependent on frivolous tweets.
DISCLOSURE LTBH but only just begun in 2017 as I switched from GigPeak's buyout and into NPTN, thinking that staying in the same industry would be a good thing. Not so far. (I've also collected links to the other discussion boards and my other stocks over on my blog http://trimbathcreative.net/2019/12/31/semi-annual-exercise-eoy-2019 )