EC The Impending Super-Cycle In The All-Glass Optical Internet

Technology lagged the Trump rally at first, but now appears to be coming to life. There is one area of tech that may be contributing to that.

There is a Gigabahn in our information superhighway that has been compared to Germany's famous Autobahn, where there is no speed limit except for urbanized or congested stretches, and they typically fly at around 100 mph. Their trips are badly bottlenecked by the last few miles to their home or office. (click on images for full view)

The biggest problem facing the age of the web, other than perhaps security, has always been the immense difference in data speed as light waves vs electricity waves. They built the main trunks of our network with plenty of fiber optic overcapacity, and they have been doing the local switching into our computers by converting the light waves into electrical waves and pretending they are to be dealt with as in the party line era. With a lot of cleverness, that has worked OK, but with net traffic doubling every year, we have now come to the limits of that optical denial. 

Local area networking with optics is an inevitable revolution of the future. Fortunately, smart minds have been developing light wave switching to do what the very old school electricity switching has always done. If the experts are right, we are about to enter a quantum leap closer to the lighted "cathedrals of glass" in George Gilder's all glass view of the future. There are several public companies involved in "last mile" fiber optics that are the can openers that let the 100 gigabit light speed shining across the globe into our neighborhoods. A lot of this is done with the simple prism effect. There is a super cycle in this can opener function coming as explained in the Investor's Business Daily article "Fiber Optic Super Cycle: Raising The Speed Limit On The Gigabahn's Last Mile." 

Clearfield, Inc. (CLFD), Oclaro Inc. (OCLR), EXFO Inc. (EXFO), Ciena Corp. (CIEN) and Acacia Communications (ACIA) are some of the small pure play investments in this anticipated super cycle. The experts think this super cycle is just beginning.

I have traded Clearfield over the years twice for 44% and 130% profits, but I would have done many times better had I just held it after my first buy. The growth, despite all the cycles, has been that massive. 

What's all the crazy explosion about? You could say it's a leftover (or maybe "hangover" would be a better term) from the internet bust of over 10 years ago. If you will recall, everything went nuts over the future growth of traffic on the 'net'. The telcos frantically laid a fiber-optic backbone to replace the hopelessly slow copper, and mindful of the high cost of continual upgrades, laid in a pretty vast oversupply of capacity. This is commonly referred to as "dark fiber" until end-user demand eventually lights it up.

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