re: Finisar Ignites Optics ExplosionHow does the saying go? "The bubble is back! My options will make me rich!" (Whatever happened to that guy, anyway?)
Chances of any big guys acquiring each other were slim before, and they seem more slim now that the valuations got a jolt upwards. I still wonder if there doesn't have to be one more BIG consolidation (i.e. a big player getting eliminated/absorbed) before the sector fully rights itself.
re: Finisar Ignites Optics ExplosionThe JDSU volumw was 165m shares, which was 4 times its average daily transaction amount.
For a moment I thought I had found the wayback machine that brought me back to year2000, then I realized that's because my lunch was too heavy...I love the feeling though.
re: Finisar Ignites Optics ExplosionAt least in Finisar's case. They have a patented digital control transceiver design that can give them a competitive advantage in the enterprise market. They are also vertically integrated on the VCSEL/optics. Someone had to be making money in this space at this point. That doesn't mean the others should follow, however. There's still plenty of room for more shakeouts (Stratos, Picolight, JDSU enterprise).
DW
PS. NO, I don't work for nor own stock in Finisar.
re: Finisar Ignites Optics ExplosionBigger players may not tend to be more efficient than smaller players, in the fiber optical component industry. Bigger players may not have better financial position than small ones. Consolidation in the past was rather the broken down of those hyped companies, than healthy acquisition from more successul companies.
re: Finisar Ignites Optics ExplosionI've often wondered why this particular technology nich is so succesptible to irrational exuberance. I think electro-optics topics excite folks like my Dad, who understood electricity and electronics of the by gone era ... the end.
The key is the Enterprise market they tap - people are replacing computers i.e. datacom, SANs and all that stuff VARs build companies around selling boxes at 5% markups. Same component technologies, but very different world. It could end quickly as it started by my experience.
Chances of any big guys acquiring each other were slim before, and they seem more slim now that the valuations got a jolt upwards. I still wonder if there doesn't have to be one more BIG consolidation (i.e. a big player getting eliminated/absorbed) before the sector fully rights itself.