Sunday, October 12, 2008

Catching up on research

This weekend I finally had a chance to review the materials from Finisar's (common 9.7% of portfolio, calls 1.7%) analyst day. The projected financial metrics from the combined Finisar/Optium entity are solid, provided the current economic turmoil doesn't affect their business severely. And even if so, with a projected P/E of 7 for the current fiscal year, there is a lot of pessimism built into the numbers already. Barring a dramatic rally in shares in the next few months, my calls will likely expire worthless in January. But I'll hold the common stock to take advantage of an eventual rebound.