15 posts are filed under this symbol.

Head Down, Working

Received a couple emails and a Yahoo! IM today with the same question… why no blogging?

I’m working on a detailed study on optical modules. I think I’ve found something particularly interesting.
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SFP+ … Yet Another 10G Optical MSA?

This article is an anonymous submission from a dedicated reader and frustrated engineer

A decade or more ago life as an “optical guy”…as grad student or a professional, revolved around fairly simple things…moving photons over here, a little “guvment” money over there, a product or two now and then…good times, good times. And if you were lucky enough to score a (gasp!) postdoc (swoon!) at Bell Labs, why ANYONE would work grueling hours for Dickensian low pay for a chance to work on things like… SONET…. DWDM… FIBER… BANDWIDTH… DATACOM…

Economics, ROI, quarterly growth, P/E, investor guidance and things of that sort, well that simply did not matter. For the truly patient investor, the general idea of a “boutique investment” applied well…a fairly complex science understood by the few in service of fewer still.
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Bookham, China, and the Optical Component Market

Recently, I sat down with Giorgio Anania, CEO of Bookham Technology (BKHM). We discussed a number of things, including the emerging competition of Asian optical component manufacturers. My conversation with him was about the industry in general, and not specific to Bookham.

We like to identify macro technology trends and disruptions then determine the best way (if any) to invest in them by following up with individual technical (as in technology, not charts) and financial analysis. Discussions with gentlemen like Giorgio Anania help me start this process. At this time I’m far from finishing it.

One trend I see unfolding is the emergence of Chinese optical component companies. Every company is moving their labor intensive component manufacturing to Asia (including Bookham) either through outsourced manufactuing or directly owned facilities in low-cost labor areas.
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Why I Don’t Own Optical Component Stocks (yet)

A common question I receive is “What optical component equities do you like”.

My answer is pretty simple.
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Intel’s Communication Group – Destiny Fulfilled

intelIntel corp (INTC) lands on Page A1 of the WSJ with a story covering their Analyst Day presentation in New York yesterday. The big news that is getting widespread coverage in many media outlets- including BusinessWeek – is that they are cutting $1BB (8%) in spending but without across the board job cuts.

The big problem is Intel’s work force grew 17% in the last year alone. So, the obvious path is to find businesses with high costs and low revenue, and spin those out to people who can manage them tighter. It sounds like this is exactly what Intel plans to do.
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