Replies to post #44086 on Savvy Trades and Investments

[wadegarret]

Cliff- what about AAOI

They have gotten killed from $103 to $35 ! Thing is they talked about Amazon coming back to them in the first or second qtr of 2018. Also even without Amazon, they seem to be making around $.90/qtr($.89 is avg guidance for the Dec qtr), which if annualized makes $35 look cheap. On Thursday after the bell, they announced earnings for the Dec qtr will be announced Feb 21. Thing is, for the last 5 qtrs, the company has preannounced earnings good or bad, but this qtr they didn't. To me that means they will make around their guidance. If so, I believe the stock has been way oversold. The short interest has gone from around 75%-80% in Sept 17 to 56% now, so the shorts are covering.

I think with the news that the company will not pre announce, the shorts will now cover faster into the Feb 21 date. If I were short, I wouldn't be happy with no pre announcement, especially in light of the CEO saying in the last CC that they are in talks with Amazon in hopes to regain them for their 100G+ needs. Cliff, if in the Dec qtr report, AAOI says Amazon has given them any new orders, the stock could double immediately IMO. I bought AAOI on the earnings date announcement thursday nigth and Friday morning around $34.70 avg.