MACOM Technology Solutions Holdings, Inc., (MTSI) together with its subsidiaries, designs and manufactures analog RF, microwave, millimeter wave, and photonic semiconductor solutions in the United States, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, which include integrated circuits, multi-chip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems for approximately 40 product lines.
If Macom (MTSI) fixes it’s laser quality issue, Macom could also have it’s chance in 2H18
read at
http://www.barrons.com/articles/applied-optos-pain-wont-spread-to-broader-data-center-market-1507921018
It is the main leader in the DFB lasers for 2.5G and 10G markets, no competitors.
It is not the leader for 25G and 100 G DFB lasers, where Finisar and AOI are main ones.
Macom Plunges 24%, Takes Down Optical: Sorting Through the Wreckage
read at
http://www.barrons.com/articles/macom-plunges-24-takes-down-optical-sorting-through-the-wreckage-1501694558?mod=yahoobarrons&ru=yahoo&yptr=yahoo
This drop is a good opportunity to have more Macom shares. Wait for the trading volume to dry out and price stabilised.
From the just reported 2017Q2 (It is called by The Company as Q3), the sales revenue and profits are good.
And the forecast for the quarter ending Sept. 30, 2017 (2017Q3) is still good compared to a year ago, but not good as 2017Q2.
The share prices after reporting have dropped so much like 22%, which presents a good opportunity to get into this company cheaper.
MAcom is going to announce 2017Q2 results on Aug. 2.
Based on its 2017Q1 forecast, 2017Q2 will be even better quarter.
Revenue growth rate ~ 20%, EPS growth rate even higher.
forecasted 2017 EPS = 2.4 USD
[Source: page 38 of this report:
http://files.shareholder.com/downloads/AMDA-G79D4/4833082619x0x928220/7830FE6F-ACCD-49B8-A05C-634F3C591A95/MACOM_Corporate_Presentation__June_2017_.PDF%5D
Current price of 62.7 results in a PE = 62.7 / 2.4 = 26 for 2017.
Buy with small amount and wait for the Aug. 2 2017Q2 announcement.