18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
16,520 Blog Posts

Wall Street’s Favorite Momentum Stock, $AAOI, Is Surging Again After Offering Better Than Expected Guidance

I feel like this is a 1999 theme revisited: optical stocks. Any of you traders remember the fiber optic stocks in the late 90s, how they ripped, because the telcos were building out fiber networks? They were the craziest trades of all time — maybe second to the railroad craze in the late 1800s.

At the heart of the dot com boom and bust were the telcos and the facilitators, the fiber plays.

More than 15 years after the fact, it appears the industry is going through a revitalization, as networks get upgraded and cable companies continue to expand into traditional telco. But the recent craze and interest in these stocks is more than just fiber networks. They are plays on Amazon’s expansion into datacenters and the new rollout of 40g/100g products. Long time shareholders do not need to be told this, since the stock is up more than 500% over the past year.

Today, the stock is surging again, after reporting better than expected guidance. For those interested in why AAOI and other laser stocks are doing so well, look no further than Amazon’s web services hyperscale build out. 82% of AAOI’s business comes from datacenters.

Specifically, AAOI now sees revenue of about $117.3 million, above the prior outlook of $106.0-112.0 million. Non-GAAP fully diluted earnings per share are expected in the range of $1.31-1.36, above the prior non-GAAP outlook of $1.09-1.19 per share. GAAP and non-GAAP gross margin in the range of 45.0-45.4%, above the prior non-GAAP outlook of 41.0-42.5%.

Management gave commentary that, “we expect to deliver another record quarter with our top and bottom-line results expected to exceed our guidance.” Further, “our results were driven by improvement in our manufacturing costs, capacity expansion and solid execution by our production team. We are pleased with our performance and look forward to sharing the additional details of our second quarter results on our conference call in August.”
This guidance raise marks the fourth such update in a row on a quarterly basis. The last such guidance revision came on April 12, when AAOI announced expectations for Q1 results ahead of original guidance.

Look at the revenue and earnings growth for this company.

Other prominent and favored fiber plays, benefitting off the 100g rollouts, include: LITE, IIVI, OCLR, FNSR, IPHI, NPTN and SMCI.

Look at the chart on this COHR.

For more on the story, here is the May conference call for AAOI.

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The SEC Nails Trader After He Googled ‘How SEC Detect Unusual Trade’

A fake Rabbi in East Windsor, NJ plead guilty for being a pedophile and received ZERO days in prison as a result. He’ll be getting 5 years probation — because abusing children isn’t a big deal in this country.

Fei Yan (31), a brilliant research scientist at MIT, got caught in a few insider trading violations, after googling “how sec detect unusual trade” and “insider trading with international account”. I wonder if the courts will be as forgiving as was the case with the rabbi?

The 31-year-old Chinese citizen got the information from his wife, who was an associate at a law firm that worked on the deals, the SEC charged in a complaint filed Wednesday. He then tried to hide the transactions by placing the trades through a brokerage account in the name of his mother, who lives in China, the complaint charged.

After flagging the trades as suspicious through data analysis, the SEC traced them back to Yan.

He subsequently visited web pages about the Wall Street regulator’s “detection and enforcement efforts with respect to insider trading” and related to the SEC’s “insider trading enforcement actions with international dimensions,” the complaint alleged.

Although Yan tried to hide his tracks, “we identified the profitable trades in deals advised by the same law firm and traced them back to him,” Joseph Sansone, co-chief of the SEC’s Market Abuse Unit, said in a statement.

Mr. Yan made ‘illicit gains’ in his victimless crime by trading in Mattress Firm and Stillwater Mining. He made a total sum of $120,000 on the two transaction — with information gleaned from his wife’s job. He tried to mask the trades using his Mother’s name, who lives in China on the account. It failed, partly thanks to Google (go team GOOGL!). Now the SEC and the Southern District of New York will ensure that his life is ruined.

Joon Kim, the Acting U. S. Attorney for the Southern District of New York, smugly said that the answer to Yan’s google searches is: “There is no proper way to commit insider trading.”

Yan’s wife has been fired from her job, his mother Rongxia Wu charged by the SEC as a relief defendant, and he’s out on $500,000 bail awaiting trial so that he could proceed into a dank prison cell for a number of years.

It’s the law, children. Don’t argue with them and avoid insider trades. They’re bad, very bad — worse than abusing children.

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Target to the Rescue: Better Than Expected Guidance Helps Retail Dead Cat Bounce

Do the shareholders of M and KSS really think there’s a correlation between TGT and the rest of retail? You’ve got to be kidding me. Both TGT and WMT have their own separate class of shopper — totally separate from shopping mall cretins.

Nevertheless, retail is the big standout today — thanks to the TGT guidance.

The co announced that as a result of improved traffic and sales trends through the first two months of the quarter, Target is now expecting to report a modest increase in its second quarter comparable sales (vs. guidance for low single digit decline). In addition, the Company now expects to report second quarter GAAP and Adjusted EPS above the high end of its previous guidance range of $0.95 to $1.15 (vs $1.06 Capital IQ Consensus Estimate). Both GAAP and Adjusted EPS are expected to reflect a 5 to 9 cent benefit driven by the net tax effect of the Company’s global sourcing operations. In addition, GAAP EPS is expected to reflect 2 to 3 cents of pressure related to the unfavorable resolution of tax matters.

“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment” said Brian Cornell, chairman and CEO of Target. “Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding. The launch of Cloud Island in May was a success, and our team will be rolling out four more exclusive brands across Home and Apparel in the next few months, in support of our plan to launch 12 new brands by the end of 2018. We are also pleased with initial results of the Twin Cities rollout of Target Restock, providing next-day delivery of a shopping-cart-sized shipment from an assortment of more than 10,000 essential items.”

I don’t like the idea of chasing GPS because TGT said business was good. I’ll be ignoring this dead cat bounce and instead train my eyes on THAT FAG PUB to see what’s popping there.

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NEOCONS GET IN HERE: Tucker Carlson Just Humiliated Max Boot on National TV

Over the past 30 years, the neocons have presided over the worst foreign policies in American history — pursuing their Trotskyite schemes of war that have accelerated to an ebb tide that peaked during Bush the Idiot’s reign.

Men like Max Boot, Paul Wolfowitz, Donald Rumsfeld, Bill Kristol, Richard Perle, and many others, have attached themselves to the republican party like a cancerous tumor — transforming it from a checkered pants, cigar smoked room, boys club into a satanic cult out for the blood of the indigenous.

At the root of the neocon “plan”, being disciples of Trotsky, is the destruction of “Mother Russia.” It’s in their blood — because they’re still mad at Stalin. This has been a constant since the 50’s. It was only after the Berlin Wall fell and there was a detente between the United States and Russia in the 90s did these revolutionaries affix themselves to the GOP with real energy.

The net result of neocon led foreign policies have resulted in thousands of dead Americans, the entire middle east reduced to rubble, millions of civilians dead and/or displaced — and they have the stones to call Putin evil.

Pray tell me, who has killed more people in the world over the past 30 years, America or Russia? Moreover, how has America benefited by these wars, which has bankrupted the treasury and led to an enormous spike in commodities, helped produce a housing bubble and subsequent financial meltdown and the ruin of countless people — worldwide — all because they had to export America democracy in order to “make America safe”?

How has that worked out so far, Max Boot? Have you taken a look into Rome, Munich or Paris recently?

This heated and contentious debate with the former defense policy adviser to Mitt Romney, Max Boot, and Tucker Carlson, should be archived and saved for the sake of posterity. I will not transcribe it for you — because you’ll miss out on the essence of this verbal and intellectual beat down. The world is a dangerous place. At the vanguard of that danger are respected ‘intellectuals’ like Max Boot — trying hard to promote a demonic brand of foreign policy that will kill your sons.

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CNN Cracks the Case, Publishes Video of Trump Dining with Goldstone and Agalarov’s

The plot just thickened, yet again. You have to play six degrees of separation in trying to understand how Trump Jr. got in touch with that Russian lawyer. There are varying theories out there — from Trump Jr. being set up by the deep state — to this meeting being the touchstone which introduced Wikileaks and John Podesta’s emails to the world.

Judging by the evidence available, I’d say the Russian lawyer who met with Trump Jr., at a minimum, is suspect.

Nevertheless, here’s CNN, publishing ‘exclusive’ video of Trump dining with Goldstone and the Agalarov’s — proving the point that the President was familiar with them and that he had ‘Russian ties.’

EXCLUSIVE: One of Trump’s Russian ties

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Kellyanne Conway Just Embarassed Herself and Sullied the White House

Enough is enough with this shit already. It’s almost as if the White House has been trolling me with numerous ‘faux pas’ moves — waiting to trigger fuckers like me. I’ve had enough and I can’t take it anymore.

The spokeswoman for the President just went on national teevee and held up a few signs, like a junior high school idiot. On one hand, har, har, har — fucking funny. On the other, where’s my fucking wall, tax cuts, and Hillary Clinton swinging from the gibbet?

With all of this democrat and media clown circus taking place around us, I’d appreciate it if the President and his staff started to take the job more seriously — activating the AG and the god damned guillotine — customizable for the heads of people like Bill Kristol and Ben Rhodes.

Less signs, more heads in guillotines.

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Ethereum and Cryptocurrency Markets Explodes to the Upside in Heart Attack Melt Up

Immediately after some lad went on the teevee, telling people to ‘buy bitcoins’, the cryptocurrency market fucking exploded to the upside. Thumbing their nose at the Federal Reserve monsters, the cryptofags are having an orgy of perfidious cavitation.

Be sure to share this fucking article with all of your friends and family.

I mean, seriously, what the fuck is up with those returns? How are these people allowed to walk away with that sort of money without the house mugging them?

In the meantime, Nasdaq futures are +17. Join Exodus and become a gentleman of extreme porportions.

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That’s It Bitcoiners: You’ve Committed Your Final Sin; You’re Finished

During Fed Yellen’s testimony today, in front of the powerless House Financial Services panel, the good chairwoman was trying to tell the retarded congressman that it’d be a really bad idea to audit the Fed, and suddenly some vagrant flashed a ‘Buy Bitcoin’ sign in the background (gasp).

Listen to me now you Bitfaggots. Yellen will review the film of this offense and fucking destroy you. Consider your internet funny money finished. The Fed will now begin a program to both undermine and financially destabilize the cryptocurrency industry.

While you’re more than welcomed to cavort with greedy vulture capitalists, riding the circus-like pyramid scheme wave of bitcoin and ripping off the indigenous through nefarious marketing schemes, the Federal Reserve of the United States will not stand for this brand of wanton and flagrant chicanery.

See you in jail

The Federal Reserve breaks whole countries over its knees for lunch — starts world wars — enlists the most evil bankers the country is able to scrounge up. Do you think they will accept this public humiliation?

If the Fed doesn’t think gold is money, a currency that has been around for 6,000 years, what do you imagine they think of Bitcoins?

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Introducing the Latest and Greatest Acronym Themed Investment Strategy: THAT FAG PUB

The good folks at iBankCoin have been working tirelessly over the past few weeks trying to invent a new acronym based investment strategy, one that could replace the old FANG thesis — which is both old and pathetic.

Ladies and gentlemen, I am proud, as well as honored, to introduce THAT FAG PUB.

(YTD returns)

TSLA +54%

HDB +49%

ADBE +42%

TCEHY +51%


FB +38%

AVGO +41%

GOOGL +22%


PYPL +44%

UL +37%

BABA +69%

THAT FAG PUB is awesome and that ain’t fake news

This is so much better than FANG. It’s more diversified than FANG, holds better companies, and the acronym actually means something. What the fuck does FANG mean anyway? How do you pitch this to your clients?

“Hey, Mr. Jones, I got this great investment theme for you. Buy some FANG and let me take a bite out of your net worth. What do ya say?”

Or, how about this?

“Hey, Mr. Jones, I’ve been meaning to head on over to THAT FAG PUB today. What do ya say we go together and have a lot of fun? We might even make some money doing it.”

Plus, if the regulators ever target you for losing clients money, you could always accused them of being homophobic, for targeting you because of a gay themed investment strategy.

It’s a win-win, so head on over to THAT FAG PUB now and get a head of the game.

Get it, head?

Sorry, I could not help myself.

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It’s Over Trumpsters: Democrats Introduce Articles of Impeachment for President Trump

You had 6 months in office and did nothing but make racist and misogynistic remarks. Like the illegal aliens you seek to deport, now YOU have to go.

Congressman Brad Sherman and Al ‘wolfman’ Green have recognized the people’s will to elect Donald Trump over Hillary Clinton and raised them via articles of impeachment.

Here is Rep. Sherman’s statement.

I am pleased that Congressman Al Green (D-TX) has joined me in filing Articles of Impeachment against Donald J. Trump. We now begin the effort to force the House Judiciary Committee to hold hearings on Obstruction of Justice and Russian interference in our election.

Recent disclosures by Donald Trump Jr. indicate that Trump’s campaign was eager to receive assistance from Russia. It now seems likely that the President had something to hide when he tried to curtail the investigation of National Security Advisor Michael Flynn and the wider Russian probe. I believe his conversations with, and subsequent firing of, FBI Director James Comey constitute Obstruction of Justice.

Every day Democrats, Republicans, and the entire world are shocked by the latest example of America’s amateur President. Ignorance accompanied by a refusal to learn. Lack of impulse control, accompanied by a refusal to have his staff control his impulses. We’re no longer surprised by any action, no matter how far below the dignity of the office—and no matter how dangerous to the country.

But the Constitution does not provide for the removal of a President for impulsive, ignorant incompetence. It does provide for the removal of a President for High Crimes and Misdemeanors.

As the investigations move forward, additional evidence supporting additional Articles of Impeachment may emerge. However, as to Obstruction of Justice, as defined in 18 U.S.C. § 1512 (b)(3), the evidence we have is sufficient to move forward now. And the national interest requires that we do so.

Introducing Articles of Impeachment will have two possible outcomes. First, I have slight hope it will inspire an ‘intervention’ in the White House. If Impeachment is real, if they actually see Articles, perhaps we will see incompetency replaced by care. Perhaps uncontrollable impulses will be controlled. And perhaps the danger our nation faces will be ameliorated.

Second, and more likely, filing Articles of Impeachment is the first step on a very long road. But if the impulsive incompetency continues, then eventually—many, many months from now—Republicans will join the impeachment effort.

I author Articles of Impeachment not to change our national policy. I served with Mike Pence in Congress for twelve years and I disagree with him on just about everything. I never dreamed I would author a measure that would put him in the White House. I am introducing Articles of Impeachment to begin a long process to protect our country from abuse of power, obstruction of justice, and impulsive, ignorant incompetence.”?

In light of the former Brazilian President being sentenced to DIE IN JAIL, the President should consider this gesture by the democrats a kindess, the proverbial shooting of the injured horse if you will. God willing, he will be able to exist outside of JAIL for the remainder of his rich life.

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