"With its new product lineup and R&D pipeline, Oclaro is tremendously well-positioned to take advantage of the current and emerging trends in the exploding 100 Gbit optical networking segment. Its large cash pile, streamlined operations and focus on in-house development capabilities give it a tremendous advantage going forward. The industry is moving insanely fast. Product lifetimes are getting shorter. The faster it changes, the more Oclaro benefits over its competitors. Despite all the restructuring, Oclaro continues to invest strongly in R&D.
Due to the above facts, as well as an unplanned early extinction of convertible debt and other positive signs and catalysts, I have no other choice but to raise my 2014 price target from $3.57 to roughly $3.70 per share, implying a 23% upside by the end of this year from the current price of $3.01 per share."
I was glad to see the upgrade ,and the article was positive ,but i disagree with his valuations. I think he new short term OCLR was heading for $ 3.70 already. It has been bouncing around the $3.00 mark for awhile ,breakout to $3.50 -3.70 is only a matter of time ( Ukraine may hinder). OCLR products and restructuring should bring $6.00 soon thereafter not in 5 years. Anyone that projects a valuation 5 years out and at that ridiculously low pps. ,you have to question their motives. As someone who has owned this stock for many years ( and I know there are quite a few of us ) ,this stock has a history of rapid losses and rapid gains.I have ridden this stock form the $100. 00 plus to .18 back to $18.00 back down to .18 and now to $3..00 . It is my belief this will hit $6.00 this summer and higher by end of year.
I made over 100% on OCLR in the few months and this stock is on an upward trend. I will keep my OCLR and you can keep smelling whatever that pleases you.
Sentiment: Strong Buy
Click link in Y! Finance for full article. Oclaro participating...
Underserved Areas of Rural Austria to Benefit from High-Speed Broadband Access
Martinsried/Munich, Germany. January 22, 2014. ADVA Optical Networking announced today that it has launched a WDM-PON trial in Austria offering uncontended gigabit connectivity to residential subscribers. Conducted jointly with Energie AG Oberösterreich Data GmbH (Data GmbH) and ELCON Systemtechnik GmbH, the trial is designed to assess WDM-PON technology for next-generation residential broadband access. The network was deployed by Data GmbH, a subsidiary of Energie AG Oberösterreich, in the Austrian municipality of Allhaming. Using dedicated wavelength connections, the trial provides residents with symmetrical access speeds exceeding current commercial offerings by more than a factor of 10. Allhaming was chosen for the trial because of its location in an underserved rural area with poor broadband access. WDM-PON technology is especially suited to such a scenario. It enables individual subscribers to be independently connected to a remote central office that can be tens of kilometers away. Optical WDM allows subscribers to share a common trunk fiber and eliminates the need for active field equipment.
SAN JOSE, Calif., March 3, 2014 /PRNewswire/ -- Oclaro, Inc. (OCLR), a leading provider and innovator of optical communications solutions, today announced that it will be demonstrating a much-anticipated coherent CFP2 pluggable transceiver module at OFC 2014. Oclaro continues to focus on creating highly differentiated products based on its core competencies in laser innovation, photonic integration and advanced packaging expertise. The module's compact, coherent pluggable form factor with a power dissipation of only 12 Watts delivers significant benefits to Oclaro customers with new levels of performance and flexibility for optical networks operating at 100G and beyond.
"The availability of coherent CFP2 pluggable modules is going to drive a significant increase in the number of 100G and 200G coherent ports we expect to see in 2015," said Daryl Inniss, VP and Practice Leader of Components for Ovum. "The market has been demanding the higher densities, lower power and smaller form factors that are possible with CFP2 coherent technology and Oclaro has positioned itself well, as the first company to bring this technology to market."
Wireless is here to stay, and growing as fast as any industry in the world. The days of landline phones may be numbered as wireless speed, latency and coverage gets better every year. Investing in the sector is easy money.
"What`s even more exciting is that this is only the first stage of the trial. In 2014, we will go even further - connecting more users and bringing additional technology developed with other collaboration partners such as Oclaro that provides the integrated tunable laser devices for the trial."
Ask Jeebe - you mentioned that the optical component market growth is 3 - 4% annually.
Take a look at this study predicting a 341% 7 year growth in total worldwide optical dollar sales.
Oclaro is one of 37 vendors profiled in this study.
This is the optical upcycle on the horizon.
I was scratching my head trying to find a reason why this was up on such huge volume today. At first I thought there might have been some legs behind my Cisco takeover theory (earlier post). Then I looked at SEC filings. 860000 shares of insiders acquiring shares, and Hitachi taking a 12% stake in the company.
I just listened to the 34 minute interview of the OCLR CEO and CFO at the Stifel conference.
Basically, Oclaro plans to cut the workforce down to 1,500 employees by July 1, 2014 and achieve breakeven profitability by the end of 2014.
The optical market is improving with strong sales beginning in China as the carriers are rolling out the new 4G networks.
I suggest that investors go to the Oclaro investor relations page and listen to the presentation themselves.