AAOI · investment memo
Semis/optical cohort median of positive operating margins (n=22 of 25). AAOI's own FY2025 operating margin is -12.0%, so max(own, cohort median) reduces to the PRE-PROFIT branch and is named as such. Replaces a hardcoded 20.0%, which cost 2.9pp of margin. 05_Trade_Construction.md s3A.
Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.
A daily close below $66.09 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.
Fundamental and falsifiable, never price-based. If one is satisfied the thesis is marked dead and the position is retained only by explicit decision.
Not stated. No permanent-loss case with a named cause is on file. A valuation bear case is not an impairment case.