The analyst has a high conviction long position on AAOI due to expected revenue growth in a large market, but decided not to take a long position on HIMX.
High conviction on AAOI given revenue projections ramp in a massive TAM for optical transceivers; decided against long on HIMX due to insufficient material revenue translation.
Yes that's a great way to approach it from the tech angle. Whether something is a great long, is extremely multifaceted. I was also looking at $HIMX if it translated into material revenue as well and decided not to take a long position. $AAOI I have high conviction on given revenue projections ramp in a massive TAM for optical transceivers. Disagree with many picks and went the other way. Not all lesser known chokepoints make great longs.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +0.0% | +0.0% |
| 1 week | +18.3% | +14.0% |
| 1 month | +53.7% | +40.6% |
| 3 months | +92.4% | +77.0% |
| 6 months | — | — |