Applied Optoelectronics Inc (AAOI)

[Plegee]

A bit of a head scratcher here, almost 50% hit off of since pre-announced earnings beat. Transition to higher/newer generation lasers (with higher margins) is a good sign, not one to be punished so handidly. WalMart building huge data center, major cloud based data centers upgrading as well; I'm optomistic about our future mid to long range prospects. CEO even stated operation costs will continue to decline as a % of revenue; increasing or at least maintaining current margins.

Disappointed the meager interim day gains always fade by the close. Think the 200 dma will be tested. If it holds, I will certainly take advantage. Regardless, absent a major market correction, we have to be heading higher into 3rd quarter earnings. This stock has explosive potential sitting with a PE under 14 and a PEG under 1. RSI is a ridiculous sub 39.