This low-cost optical component maker beat analysts’ earnings by $0.04 last quarter and is forecast to grow 44.4% this year.
LightPath Technologies Inc. (LPTH)
From The Inger Letter
LightPath Technologies Inc. (LPTH) remains poised to breakout technically. It’s been narrowly-traded in the low 2’s for some time, and recently has expanded facilities in Orlando, Latvia, and China. It benefits a lot from the growing demand for both visible and infrared light, and now is assembling proprietary BD6 glass lenses and assemblies, for lots of applications, including surveillance, military, drone and medical to autonomous driving. The latter likely involves Luminar, which has new contracts from Toyota and Volvo and others for their prototypes.
In the past month, LightPath has announced new customer contracts for its BD6 glass, which reflects the fact it’s designed to customer orders in-house, and comprised of US sourced materials, replacing Germanium, which often comes from China.
Orders are picking-up and the share price is just starting to reflect this. I personally visited the management and Orlando factory several weeks ago to affirm the expansion and get a feel for their growth—which is under-the-radar in my view, given the low multiple (7 PE or so).
With 20% compounded growth guidance from LPTH (not counting new orders) we think this is a potential double or triple from here over the next year or two. It’s still cheap, but not a penny stock, and is on NASDAQ. Decent speculation.
Gene Inger, The Inger Letter, www.ingerletter.com, June 30, 2018