Oplink Communications (OPLK) is worth keeping a close eye on right now as it has been crushed on sector concerns, notably Finisar’s earnings warning. Oplink closed Thursday at $21.51 down 27% from the recent high.

• PEG of 0.44
• $168M in cash and equivalents is 40% of their $428M market cap, with no debt.
• Own all their real estate.
• Growth mainly organic, very little acquisitions.
• No fabs, which means less wild swings during up and down cycles.
• Management focus on profitability, which is a surprisingly rare focus among managers of smaller technology companies.
• They wait for new tech to mature, prior to entering new product areas.
• Royce & Associates are the largest holders.

Oplink is a great play on one of the surest global growth trends, more light travelling down more pipes.

This webcast is worth listening to if you’re interested, it’s available to the 13th March. For those who missed the webcast, the following slides paint part of the picture.

Oplink sold off in January after one of their competitors warned on earnings. OPLK then came out and beat and raised.

Other Stocks In brief

• Dolby, DLB, is another stock I’ve got a close eye on at the moment and have been trying to sell Puts. If it gets much cheaper I’ll forgo the puts and stump up some cash.
• Here in Australia Industrea (IDL.AX) is worth a look.

Australian readers should consider opening a US trading account for buying US stocks like OPLK and DLB.

Disclosure: Long OPLK, short corresponding number of April $30 Calls. No position as of writing in DLB or IDL.AX

Related posts:

1. Oplink Communications, Inc. (OPLK) Q4 2008