3SOF

afop is one to watch. any comments welcome!

I just found AFOB.  I backed up the truck!  Volume has shot up, and the fundamentals are amazing.  40.57M market cap with 29 million in cash and no debt!!!     20 million in sales and growing.  Insider buying.  I am just giddy - it feels good!!!     I'd love to hear some other thoughts on this one. 

Nice find.  I like Asia stocks and fibre optics is a great growth industry.

I'm surprised that this company trades below book and only 1.76 times sales.  What's the catch here?  Has anyone followed this company before?

Hi,

you can buy this stock...
buy at 1.210
target at 1.410 (short term)
stop at 1.120

Why ?
Resistance at 1.130 is broken...
Price above MA50 anD MA200
mACD > 0 AND rsi > 50
HIGH VOLUME in the past two days
Candelstick : three white candlesticks
good news :
SUNNYVALE, Calif., Oct 26, 2005 (BUSINESS WIRE) -- Alliance Fiber Optic Products, Inc. (AFOP), an innovative supplier of fiber optic components, subsystems and integrated modules for the optical network equipment market, today reported its financial results for the third quarter ended September 30, 2005

AFOP is following the big fibre optic gainers (AVNX, FNSR, JDSU) and broke out big time just recently, looks to be consolidating its gain in a nice pennant formation.  Broke out of ascending channel and topped out at long term descending resistance @ 2.03.  Support should be around 1.76 (Previous high from last run-up).

They apparently have a much stronger cash position than many of the other FO plays.

May meak a secound break from the pennant shortly - I'm hoping its to the upside - looking for a move above $2.

I'll throw another long term weekly chart up here too - shows the long term symmetrical triangle pattern and note the weekly volume too - last week was the highest weekly volume in AFOP's history!!!

Only thing to be aware of is that last week's action did result in a Doji on the weekly chart, so this could also signal a reversal top forming

Think somethings building???

All I can say is cmon pennant

Get a move on and be bullish before everything stalls out!!!  Man, I hate consolidation

AFOP still in valid pennant formation - inverted hammer today bouncing off resistance at 1.91-1.92.  Gotta break through Mr. choo choo!!!

I'm liking this chart.  I took a small position yesterday at 1.82, tight (5%) stop.  May add if it continues this course or inches up on volume.

Nice entry JKN!!  I wish mine was that good!

Well we may have our breakout on AFOP today! It has broken out of the pennant on heavy volume and is currently testing the recent high of 2.03, trying to get through.

This seems to be following on the coat tails of the other FO plays, and a lot of peole have been talkiung abot AFOP and AVNX together, so Cramer's boo ya on AVNX is probably having an effect on AFOP as well (plus, it hasn't see the gains the others have yet).


I foolishly sold AVNX yesterday, thinking it was having too much trouble breaking 2.40, and had to buy back at a significant premium today.  Ain't gonna make the same mistake on AAFOP.  Holding long n strong for this breakout i the making

and there it goes!!! currently 2.07 

   I don't often have such good timing !

Sold half at 2.10... 

I like this chart gain...resistance breakout but wait for a confirmation with the trendline breakout

TARGET: $3+

AFOP reported 39% revenues growth and record net income for 2Q 2007 on July 25, 2007 AH. The company expects continued sequential revenue growth and increased profitability going forward.

AFOP has grown revenues by over 20%/year each of the last 4 years. Net income has increased significantly each of the last 4 years.

AFOP has 80c/share cash and Zero debt.

AFOP is the only profitable company in the fiber optic sector competing with better known companies like FNSR, AVNX, BKHM, and JDSU.


2Q 2007 Earnings Summary (released on July 25, 2007 AH):

- 2Q 2007 Revenues: $8,701,000, a 39% increase from $6,252,000 in 2Q 2006, and up 30% compared with revenue of $6,701,000 for 1Q 2007.

- 2Q 2007 Net Income: $864,000, or $0.02/share compared to $0.00/share in 2Q 2006 and $0.01/share in 1Q 2007. Included in 2Q 2007 net income was $103,000 of stock-based compensation charges.

- Guidance for 3Q 2007: Revenues exceeding $9M compared to $7.5M in 3Q 2006. Significantly higher net income.

The table below shows AFOP's amazing revenue growth and the significant profit improvement for the last 4 years including estimates for FY 2007

- FY 2007: Revenues $35.0M ...... Net INCOME $3.7M ( Estimated based on guidance and CC)

- FY 2006: Revenues $26.8M ...... Net INCOME $0.66M

- FY 2005: Revenues $20.9M ...... Net LOSS $2.6M

- FY 2004: Revenues $14.6M ...... Net LOSS $9.3M

Mr. Peter Chang, President and Chief Executive Officer, made the following statement regarding guidance forward:

"Based on input from our customers and current backlog, we expect that revenues in the quarter ended September 30, 2007, will be above $9 million. Additionally, with our continuing focus on operational efficiencies, we believe profitability in the second half of 2007 will continue to improve,"

Mr. Chang added:

"We believe our performance in revenue growth and profitability improvement reflects increasing demand from key customers, solid progress in product development, and continued improvement of our operations."

"Our balance sheet remains strong, with cash and cash equivalents increasing by almost $1 million in the second quarter of 2007 to over $32 million."


About AFOP:

Founded in 1995, Alliance Fiber Optic Products, Inc. designs, manufactures and markets a broad range of high performance fiber optic components and integrated modules. AFOP's products are used by leading and emerging communications equipment manufacturers to deliver optical networking systems to the long-haul, enterprise, metropolitan and last mile access segments of the communications network. AFOP offers a broad product line of passive optical components including interconnect systems, couplers and splitters, thin film DWDM components and modules, fixed and variable optical attenuators, and depolarizers.

AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States, Taiwan and China. AFOP's website is located at http://www.afop.com.

Looks like afop will be a nice gainer today. The company was mentioned briefly in Fatmoney at CNBC last night.