|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.|
GIG (was GGOX) (market cap was $0.041B is $0.028B)
GigOptix is a tiny company providing a critical element to today's internet infrastructure. They produce incredibly fast high-speed electro-optical switches, the component necessary to take an electrical signal, convert it to light for an optical cable, and then have another switch it back at the other end. The more we stream, the higher the bandwidth requirements, the faster those switches must operate. I don't know of a company that makes faster switches (though they probably exist), especially since GigOptix has finally introduced products using Lumera's organic material technology. High performance, few moving parts, little competition. This should be good. (http://trimbathcreative.wordpress.com/2013/05/15/go-gigoptix-go/)
And yet the stock dropped. Fluctuations are common amongst such small stocks, which may explain the volatility. The price to sales is less than one. I think typical companies should have stocks trading at about a price to sales of six. Technology companies should have higher price to sales. Leading edge technology companies, more so. Companies in growing markets more so again. Companies with little competition, again should have a premium. Even just getting up to a price to sales of six suggests an eight-fold increase in the stock price, and that assumes no sales growth or product launches. Like I said last time: I'd be interested in buying more if I have discretionary cash. Unfortunately, I may have to sell if I can't find a job or sell my house.
DISCLOSURE LTBH of LMRA since 2004.
My finances are strained by similar stories throughout what I thought was a diversified portfolio. My house may go into foreclosure, and additional sacrifices may be made, including selling stocks I'd rather hold, or even buy. So, if I sell, it will probably be because I have to, not because I want to.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com . There is also a longer description of history between GIG and me on my blog trimbathcreative.wordpress.com