We saw that head-for-the-hills effect in full action late week before last (June 15, 2017) when Finisar reported numbers that, at face value (based on the earnings press release,) were a take-down on current guidance going into the earnings report. Shares dropped about 4 to 5% off the headline print and then ended the next day higher by around 7 to 8%, costing the said head-for-the-hills crowd a cool 10% overnight. Incidentally, if one had taken advantage of the post-earnings print knee-jerk swoon on June 15, he or she would be up a nice 15% in slightly more than a week.

Not too shabby, huh?

The issue is the fact that most investors in the optical component complex are not aware or get caught up in the “China slowdown” talk mostly prompted and pushed by the financial media and by the darksiders. What they will rarely mention is the fact that a slowdown in China means going from 7% plus GDP growth to 6.5% GDP growth which is still mammoth growth given the size of the Chinese economy.

Most importantly, the optical component complex is a lot more than just a China growth story. In addition, almost every single company that deals with China in the optical component sector has stated emphatically that they see growth in that part of the world resuming in the second half off this year.

Guess what?

The second half of this year is upon us despite the sweaty palmed hand-wringing and noisy shouting from the darksiders about optical sector this and optical sector that.