my mid year review of GGOX
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.
GigOptix
GGOX (market cap $0.027B)
GigOptix is a small electronic supplier selling to the electro-optical switching market. Though small, the company has been growing organically and through acquisition. I believe its recent 100 gps switch was based on Lumera's technology (a spinoff of Microvision that was subsequently acquired by GigOptix). Many possible applications were shelved, but that also means they could be re-explored. Their high-end components were ahead of their time, and may now be finding profitable acceptance.
GigOptix appears to be gaining traction enough to be considered an investment, but their business is small and just beginning which keeps them in a speculative condition. They also are investigating being listed on AMEX, a move which I don't understand.
Management seems to be doing smart things, but I have no connection to them and can not evaluate them further. As a result, I am less confident. Based on the bits I know, there is potential, but my holding is small and a consequence of previous investments so I have not quantitatively evaluated them. If they succeed, it may be quietly because their market involves sophisticated technology that sells to very high-tech customers.
I will continue to HOLD, because selling wouldn't make me much money, because I don't know enough about them to confidently buy, and because it gives me an incentive to research them more.
DISCLOSURE LTBH of LMRA since 2004. |
