Last year, I had some extra cash that I wanted to put to work in the growth portion of my portfolio.
I use the following criteria for deciding which stocks to pick:
1. Buy what you know (be familiar with either the company or their products),
2. Solid earnings growth (15%-25% per year over the last three years is a good rule of thumb), P/E ratio not too more »
Editor's Note: II-VI does not manufacturer lasers, they supply the optics and components to laser manufacturers. This post has been amended and Motley Fool apologizes for the error.
It’s a well known fact that disruptive innovations take a long time before they gain acceptance on a large scale. Call it inertia or fear, industrial processes mostly use tried and tested technologies, which further extend the fertility period of more »
Breaking up is hard to do. The longer one holds a stock, the stronger the emotional attachment can become. A cold, Vulcan-like look is required at incoming information to ensure that logic trumps emotion. Recent conference calls have undone an investing thesis I held in one stock, while redoubling my faith in another.
It's not you; it's me
The common reason for distressed earnings is, “higher labor costs.” Yes, humans have an upper hand in discretionary tasks, but recurring industrial tasks like welding, etching and cutting can be automated. But precision holds the key, and robotic arms are no good if they are not equipped with proper tools. As technology advances and designs get more sophisticated, fiber optic lasers are not only cost effective but also save time more »
One of the simplest ways to get an overview of a company's operations is through a SWOT analysis. Here, the main strengths, weaknesses, opportunities, and threats of the company are laid out for all to see. Having dropped 15% on negativity surrounding a downgrade from Stifel Nicolaus and a slight earnings miss, fiber laser producer IPG Photonics (NASDAQ: IPGP) has seen happier days. However, with guidance largely more »
Last Friday shares of photonics-based solutions company Coherent (NASDAQ: COHR) traded higher by almost 11% after reporting earnings. As a result, numerous stocks that manufacture and develop similar products also traded higher. However, the question is whether or not this industry is growing and if it’s time to buy.
Coherent Earnings and Valuation
Coherent’s earnings weren’t anything special. The company’s revenue was actually lower 2.5 more »
As an investor that subscribes to the Peter Lynch philosophy of investing in straightforward, easy to understand businesses, a fiber laser company like IPG Photonics doesn’t leap to mind. However, you don’t need a PhD in Laser Engineering to understand that IPG Photonics (NASDAQ: IPGP) is a disruptive brand. In simple terms, a fiber laser is a precisely focused, intense light beam (photons), approximately the diameter of a more »
With the recent market rally, finding undervalued growth stocks has become more difficult. Well it’s difficult, but not impossible. Industries have moved onto robotic welding, etching and cutting machines for precision. Gas lasers which were earlier used on a large scale for these operations are being rapidly replaced by fiber laser technology. This brings the pioneer of the technology IPG Photonics (NASDAQ: IPGP) into the limelight.
IPG Photonics which more »
The increased usage of laser technology within the consumer, industrial, and medical industries has boded well for IPG Photonics (NASDAQ: IPGP). IPG is known for manufacturing the groundbreaking fiber-based laser.
Lasers have progressed substantially since they were first operated by Theodore H. Maiman in 1960. Today, traditional laser technologies are based on CO2 and yttrium aluminum garnet (YAG), which combine to create the high-powered beam. The increased usage of laser more »
What do you get when you combine high profit margins, disruptive innovation, YoY revenue and earnings growth, and a small cap valuation (almost under $2 Billion)? The answer is a potential multibagger.
All these qualities are displayed by a company called IPG Photonics (NASDAQ: IPGP) . IPG Photonics is the leading maker of fiber lasers
A Fiber Laser is in layman terms a laser which is made to travel more »