EMCORE Rated Strong Buy

EMCORE (Nasdaq: EMKR) soared 25% last Thursday and was among the day’s greatest gainers. The catalyst was news that the company would sell its Space Photovoltaics Business, along with news of its CEO transition plan and tax loss preservation plan. I have reviewed the press releases and the company’s conference call detailing the activities and have analyzed the day’s drivers of price appreciation. They were value-added actions taken by management with the guidance of investment bank advisory. EMKR is now a more focused business operation with price multiple metrics better aligned to like firms. However, as further value-added actions occur, including cost reductions to find operating efficiencies, and as potential future divestitures follow, I expect EMKR to add value for stakeholders. See my full report on EMCORE.