LightPath Technologies: Undervalued And Overlooked Small-Cap Player In A Hot Optical Components Industry
Summary
•LightPath Technologies announced a 119% increase in operating income for its fiscal Q2 2017 ended December.
•The company expects growth to accelerate as its acquisition of ISP Optics closed on December 21.
•Optical components companies have shot up on increasing demand driven by the telecom industry. LPTH has been lagging even with improved financials.
•Pro forma statements combining LightPath and ISP operations show a TTM P/E of 12 and EV/EBITDA of 9, two to three times lower than larger industry counterparts.
•If LPTH's stock price doesn't ride the optical supercycle wave soon, I believe that it makes a good buyout target.
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