Why Alliance Fiber Optic Products Inc. Stock Popped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Alliance Fiber Optic Products jumped more than 10% early Thursday following a positive analyst note.
So what: Sidoti this morning initiated coverage on the company with a buy rating and a $28 per share price target. That represents a nearly 40% premium for investors who bought even after today's pop.
Now what: Even though Alliance Fiber Optic Products has risen nearly 70% from its February low -- a performance helped by its solid first-quarter results -- the stock still trades at a reasonable 3.9 times trailing 12-month sales, and 14.6 times next year's estimated earnings. I agree with Sidoti on this call, and can't blame the market for bidding up shares today.
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Alliance Fiber Optic Products has achieved impressive growth in recent quarters, but it's not the only small company poised for big gains. To be sure, Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But another small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!
The article Why Alliance Fiber Optic Products Inc. Stock Popped Today originally appeared on Fool.com.Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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