Does your company use the Cloud? Do your kids stream movies? Do you shop on Amazon? I will guess the answer is at least two out of three. That's where Added Value Optical - ADVA - comes in.
ADVA is a €500m maker of optical switches, based in Thuringia in Eastern Germany. Their switches allow old fashioned fibre optic cables to increase capacity by 160 times. As the "cloud" expands and data mushrooms, it is everyone's interests to increase speed and capacity. ADVA starts to benefit from these trends and has a new product launching in Q1 2016 called CloudConnect. I also like that the CFO and COO are both new in their positions since January 2015.
ADVA trades on 14x to 12/16 with approximately 10% of its balance sheet in net cash. Though technology can turn quickly I suspect ADVA goes from €10 to €15 by Christmas. I'm in.....
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