We’re entering an optical trade war.
LASR 0.00%↑ just lost a fifth of its market cap after Chinese scrutiny of dual-use optics deferred $17 million of revenue out of the quarter, and the FCC is drafting a ban on new Chinese optical transceivers that could land before year end. Every company that touches light and depends on China is now a liability, and a small handful that don't are about to get repriced.
LightPath Technologies LPTH 0.00%↑ has been on the radar of many small cap stock pickers and defense specialists because of its unique non-China positioning. The stock is up 3.5x in the last year on that exact thesis.
Most infrared optics run on germanium. China controls the supply and cut off exports to the US, which left the entire Western defense supply chain scrambling for a substitute.
LightPath spent years developing BlackDiamond, its own chalcogenide glass that does the same job with no germanium in it. They own the material, they mold it in-house, and it is already designed into programs.
The second piece is that they stopped selling just lenses. With the Visimid acquisition they can now deliver the full thermal imaging module, sensor and electronics included. Same customer, much bigger dollar content per unit, and far stickier once it’s designed in.
Put those together and you get a components supplier turning into a systems supplier at the exact moment drone demand goes vertical.
We got CEO Sam Rubin on a call for half an hour to ask him what’s actually going on inside the business.
In this article, we’ll save you time from watching the entire interview, sharing the best snippets and what they mean for investors in a quick read.
Before we begin, this Substack is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Never invest more than you can afford to lose. Our writers may hold positions in the securities discussed and may buy or sell them at any time without notice.
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