My semi-annual review of GIG
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
GIG (market cap was $0.039B EOY14 is $0.055B mid 2015)
GigOptix is a small, specialty electronic company that produces electrical, optical, and electro-optical components that enable very high-speed data transmissions (100GHz) that are required for telecommunications and the Internet. Their highest speed products have few competitors, and their technology has significant advancements that may enable market distinction. Their market is expanding. Conventional competitors may have a difficult time meeting the accelerating need. This provides a good market opportunity for the company.
Despite their advantages, they have yet to establish steady increases in GAAP revenues and profitability. (Thought wait, late breaking news. They expect to announce positive GAAP net income for 2Q15.) They did reach non-GAAP profitability for one quarter. The company continues to merge with and acquire other small firms, which makes the financial statements harder to evaluate. The technology is so advanced that many analysts may also find the company hard to understand. The company is remarkably quiet, and when it does issue press releases, the jargon is hard to decipher. I consider two main possibilities: 1) GigOptix is an uber-tech company and sees no reason to communicate with anyone except the technical people who will buy the product, or 2) GigOptix's goal is to benefit those inside it more primarily and the stockholders secondarily. The company's market cap is about $55,000,000 yet the CEO's salary is about $888,000. More than 1% of the revenues go to the CEO. Nice job if you can get it. Without greater visibility, I must consider both possibilities.
DISCLOSURE LTBH of LMRA, now GIG since 2004. Holding because I have enough shares to positively impact my life, but not so many that I feel too exposed to risk.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com |
