The fundamentals of
$Applied Optoelectronics(AAOI)$ have not deteriorated. In fact AAOI has just posted monster Q2 revenue growth of 86.4%. What happened was the management launched a huge USD 600 million At the Market or ATM equity offering that sent panic waves ripping through the markets.
The deep value growth bulls argue that panic selling a company actively growing its revenue at 86% YoY is a mistake. The operational thesis is unchanged. Massive hyperscale cloud providers are still spending billions at data infrastructure. Demand for AAOI's ultra high speed 800G & 1.6T optical transceivers is booming.
Raising capital for expansion is not a sign of weakness. AAOI is using the money to fund massive capacity increase to boost market share.
Buying shares after the plunge means you are buying at a deep discount before it rebounds to reach new heights.
As Warren Buffett likes to say, When there is Fear in the market it is time to be greedy.
@Tiger_comments @TigerStars
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