吸金大法

Really? How has optical communication weakened? Last week, the most common thing I saw was people saying the light was starting to get dim. Boss, is it really this sector's turn again? The bottleneck for optical communication is 27-28. Buying now is called investing; buying when it's risen like a pig later is called foolish.

$Lumentum(LITE.US) has a market cap that can't even surpass $Nokia Oyj(NOK.US), but its stock price is 8xx-9xx. What does that mean? It means even if its market cap doubles, it's still in the hundreds of billions, and its stock price doubling is easier than your Micron doubling.

$Lumentum(LITE.US) What is this exchange about?

On May 29, 2026, Lumentum reached an agreement with certain bondholders: to exchange 5 million shares of stock for their $650.4 million of 0.5% convertible notes due 2028, expected to be completed on June 4. After the exchange, only $172.2 million of notes remain outstanding. The company will not receive any cash, and the exchanged notes will be directly cancelled. [sec +1]

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✅ Benefits for LITE (Medium-to-long term positive)

① Significantly reduces debt, leading to a healthier balance sheet

$650.4 million in long-term debt is wiped out, along with the associated interest cost (0.5% annually). This means Lumentum's future Free Cash Flow will no longer need to pay annual note interest, greatly improving financial flexibility. This is a positive signal of the company actively managing its capital structure. [stocktitan +1]

② Institutional holders' willingness to swap debt for equity indicates they are bullish on the stock price

If these institutions were not optimistic about LITE's prospects, they would not be willing to exchange stable interest-bearing bonds for stock. Their acceptance of shares is an implicit vote of confidence in the company's long-term value. [gurufocus]

③ This is not the first time—Lumentum is systematically reducing debt

The first round of exchange was completed on April 7: 5.7 million shares for $474.6 million in notes. Now, on May 29, a second round is being conducted. Combined, these two rounds have eliminated over $1.1 billion in convertible debt, showing management's proactive approach to optimizing the capital structure. [stocktitan +2]

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⚠️ Short-term risks to note

① Dilution effect (Dilution)

The two rounds combined add approximately 6.3 million shares (5 million + 800k incremental dilution) to the outstanding share count, diluting existing shareholders' earnings per share (EPS) and book value per share. However, relative to Lumentum's current total share count, this represents a mild dilution (approx. 5-6%), not a disastrous level. [sec]

② Some institutions receiving shares may sell after June 4

These 5 million shares are new shares obtained by institutions through the exchange. A portion of them may be sold on the market for cash, increasing short-term supply. Be aware of potential minor selling pressure around June 4.

$Tuttle Capital Pure Play Photonics ETF(FOTO.US)

Let's give it a try first, everyone 😂😂

$Tuttle Capital Pure Play Photonics ETF(FOTO.US)$Corgi Lithography & Smcndctr Phtncs ETF(EUV.US)$Maxlinear(MXL.US)$Lumentum(LITE.US)$Nokia Oyj(NOK.US) Dared to buy at highs, but don't dare to buy the dip? Not really getting it 😓 BTW, a new pure-play ETF listed today, worth keeping an eye on.

After all, it's too new, can only find charts online showing its holdings, haven't fact-checked yet.

$Lumentum(LITE.US) Buy the dip 🙇🏻‍♂️

U.S. Stocks Today

The three major indices edged up slightly in early trading, with the S&P and Dow up about 0.2%, and the Nasdaq was also similar, with no major volatility. It's in a "data digestion" mode.

Why is the PCE data so important?

The highlight today is the release of the PCE inflation data:

• Overall PCE year-on-year increase of 3.8%, higher than last month's 3.5%, but in line with expectations, so the market wasn't spooked[wsj]

• Core PCE month-on-month increase of 0.2%, lower than the expected 0.3%. This is the key reason the market didn't fall sharply today.

• Simply put: the annual rate is rising, but the monthly rate is slowing down — two conflicting signals, the market doesn't know how to react, so it's just moving sideways.

U.S.-Iran situation is a hidden positive

Potential U.S.-Iran deal and reopening of the Strait of Hormuz caused oil prices to plunge, indirectly easing inflation pressure. This is another reason the market didn't fall sharply today.

Last week's five trading days were strong

The Nasdaq rose 1.2% last Tuesday to hit a record high, the S&P rose 0.6%. Today's consolidation at high levels is normal.

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In summary: The market today is "not bad but not exciting either." The monthly PCE data was slightly better than expected, coupled with falling oil prices, supporting the market. However, annual inflation is still rising, and the risk of Fed rate hikes remains. For $Tesla(TSLA.US) and $NVIDIA(NVDA.US), continue to watch AI momentum in the short term, but be cautious about interest rate direction in the medium term. From Ai

Still bullish on memory and optical communication $Micron Tech(MU.US)$Lumentum(LITE.US)$POET Tech(POET.US)$Maxlinear(MXL.US)

$Nokia Oyj(NOK.US)$Roundhill Memory ETF(DRAM.US)

$Lumentum(LITE.US)You take a break and build up your strength first, let $Micron Tech(MU.US)$Roundhill Memory ETF(DRAM.US) handle the first half and take the lead.

$Micron Tech(MU.US) I don't need you, UBS, to see it as high as $1650

$1100-1200 shouldn't be hard, right?

$Nokia Oyj(NOK.US) has the backing of a big brother—NVIDIA. The fact that they're willing to throw $2 billion at a former king shows that Nokia's core model has already changed. Their own top management is willing to put their own money in to buy shares, which actually shows they're bullish on their own company. Looking near-term at $20 and long-term at $28-30 is not a problem.

$Leverage Shares 2X Long Futu Daily ETF(FUTG.US) Let's bet on the earnings report first. After all, this quarter's announcement is from before the SEC controversy, and Futu's market has long been focused on overseas clients.

$Lumentum(LITE.US) The washout lady, how can it jump higher without falling first😮‍💨

$Nokia Oyj(NOK.US)$Lumentum(LITE.US)$POET Tech(POET.US)$Maxlinear(MXL.US)$Coherent Corp.(COHR.US)$NVIDIA(NVDA.US)

Just opened a position in MXL

1. The strongest signal from $NVIDIA(NVDA.US)'s earnings report

Networking grew by +199%, with a growth rate 2.6 times that of Compute.

The bottleneck has shifted from single-card computing power to network bandwidth.

2. $Maxlinear(MXL.US) makes the core components for this layer.

1.6T PAM4 optical interconnect DSP.

Q1 infrastructure grew by +136%, supply can't keep up with demand.

Same logic as $Nebius(NBIS.US) price hikes and neocloud sold out: supply can't catch up with demand.

$Nokia Oyj(NOK.US)$Lumentum(LITE.US)$POET Tech(POET.US)$Coherent Corp.(COHR.US)$Tesla(TSLA.US)$Micron Tech(MU.US)The special offer ended, institutions bought like they were shopping, those who got squeezed out of their positions really have no recourse 🙇🏻‍♂️

$POET Tech(POET.US)$Coherent Corp.(COHR.US)$Lumentum(LITE.US)$Nokia Oyj(NOK.US)$Applied Optoelectronics(AAOI.US)

Suddenly dropped back today

1. The new Fed chair has taken office. There are a lot of unknowns. We don't know if he's a hawk (rate hike) or a dove (rate cut). The market hates uncertainty the most.

2. Donald Trump rejected Iran's 14-point proposal to end the war, causing oil prices and inflation to rise.

That's why it fell today, but actually, the fundamentals of all companies, what needs to be done, and AI demand remain unchanged.

Summary: Although a pullback means losing money and both I and everyone else feel scared, the whole world is falling with you right now. When all stock prices are high, you hesitate and wonder whether to chase the high. Now that they're falling, you're scared instead. Isn't that contradictory?

So adjusting positions or opening new positions is the best choice.

Not investment advice.

$POET Tech(POET.US) I already said a couple of days ago that the optical communication sector would be about to rise first 🙇🏻‍♂️🙇🏻‍♂️

$Nokia Oyj(NOK.US)$POET Tech(POET.US)$Lumentum(LITE.US)$Coherent Corp.(COHR.US) I mentioned it three days ago. Even the most powerful semiconductors need optical communication to bridge for high-speed transmission. Copper transmission has its limits, and in the era of LLM, AI Agent, and AI inference, how can optical communication lose? 🙇🏻‍♂️

$Sandisk(SNDK.US)1500 buy buy buy

$POET Tech(POET.US)$Applied Optoelectronics(AAOI.US)$Lumentum(LITE.US)Short term they are all fluctuating because optical communication earnings reports are not expected to be very good, but the real breakout is almost here. Everything, CPU, GPU, RAM, is inseparable from high-speed transmission. Are we still using copper wires for transmission? It's laughable. The trend is actually very clear. 🙇🏻‍♂️

$Intel(INTC.US)$Intel(INTC.US) Friends who didn't get on board the last couple of days, are you kicking yourselves?

$POET Tech(POET.US)$Applied Optoelectronics(AAOI.US)$Lumentum(LITE.US)AI demand is just getting started, with so many data centers still under construction. Once built, they will require a massive amount of GPU chips. Each chip needs a CPO (Co-Packaged Optics) module, and the next big wave should be in optical communications. It's like fashion is a circle: bell-bottoms were popular, then skinny jeans, and now bell-bottoms are back in style. GPU > Storage > Optics > CPU. After storage has had its run, isn't it optics' turn next?

$Forgent Power Solutions(FPS.US) is such a cheap power and infrastructure stock, and no one is discussing it? 😂 Any bros want to talk about it?