Acacia Communications, Inc. provides high-speed coherent interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Its products include a series of low-power coherent digital signal processors and silicon photonic integrated circuits integrated into families of optical interconnect modules with transmission speeds ranging from 40 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets. The company sells its products through a direct sales force to network equipment manufacturers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.
Acacia Communication Soars on Strong Earnings, Takes Optical Peers Higher Acacia (ACIA) , a provider of high-speed optical interconnect modules for telecom networks and data centers, trounced second-quarter estimates in its first earnings report as a public company, and also issued third-quarter guidance that was well above consensus estimates. https://www.thestreet.com/story/136...sales-get-a-boost.html?puc=yahoo&cm_ven=YAHOO
Reminds me of the move CYBR had last year. A near doubling before some back and filling. Hard to short a name with such a small float. Maybe on news of a secondary offering it may be worth the try but the market is at it again -- pushing everything to the extreme and then some.
The P/E is roughly 67X this year earnings. For a company that grew revenues 101% year-on-year, its not entirely expensive. But then again, what is expensive? FIT sells for a P/E of roughly 14X this year earnings on revenue growth of close to 50%, yet it does not sell for a premium like ACIA. Why? The excuse is that FIT is a hardware company, and traditionally, hardware companies do not sell for a premium since those growth rates tend to level out quickly. The claim is true to an extent, but its not the real reason why some companies sell for absurd PEs (AMZN, NFLX, etc) and other sell for a deep discount despite posting similar, sequential growth rates. PEs matter and then they don't matter. The market will pay what it sees fit for a stock. PEs are just an accessory after the fact -- an excuse to justify a narrative, even if it holds no true merit. For all we know, ACIa could sell for 200X this year earnings and people will still make the case it is cheap, and buy the stock, for all the wrong reasons.
Speaking of... its forming a H&S on the hourly. Needs to close above $120.46 to eliminate any possibility of breakdown in price. I am not necessarily a short seller of such a low floating stock, but I am not a buyer at these prices today.
I tried to buy November $60 puts last week, but the ask only increased so my order did not fill. $100 price tag for $116M quarterly revenue is expensive to me. My guess is once the new wares off this will fall back to a more manageable PPS.
Options are expensive on both ends. I would wait for price to settle before even buying the stock. The market could very well just float the stock and let calls and puts expire worthless. The goal of injecting premium into both ends of the ledger with the spike is done. No need to move the needle. Its expensive but so is AMZN, NFLX,etc. It doesn't matter unless the business slows down dramatically, or investors attitude towards high growth stocks changes. Makes absolutely no sense but that is how markets trade these days. $80 - $90 is the sweet spot to enter long, but I doubt it will get there this year.
I agree, options are expensive. That's why my bid never got hit. Here is where we disagree. I believe you will see those $80s and $90s sooner than you think. A $4B market cap on $116M quarterly revenue is nuts, and people will begin to realize this.
Agreed that the options are very expensive. I am currently holding SEP 16 $105 puts and will see how this turns out.
A nice move despite the markets are down. So glad that I sold my puts for a small profit this morning before the spike.
