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Finisar: Page 3 of 3

Now, even analysts who rate the company a Neutral say the cash position looks strong. But they still have concerns. Despite Finisar’s low stock price, some believe that the company’s valuation relative to its peers is high. For instance, Finisar trades at 3.8 times sales, while its key pure-play competitor, Stratos Lightwave LLC (Nasdaq: STLW), trades at only 2.4 times. Analysts project both companies will grow at a long-term rate of about 30 percent.

- Tom Davey, special to Byte and Switch http://www.byteandswitch.com