More info on OSII. Stock climbed $5.25 on Monday following news of an increase in ownership by a key shareholding group. Stock fell off approx. $2 on Tuesday (8/6). At 4:01PM, company announced earnings for 4th qtr and fiscal y/e 6/30/96. EPS for the quarter was $.07 vs. $.02 for same qtr prior year, +250%. Mean estimate for EPS was $.07, although one analyst estimated $.09. On Wednesday (8/7) stock dropped $4. Investors Business Daily stated that the stock dropped despite the fact that the company met the estimated EPS and had an 85% increase in revenues.
This appears to have been an illogical, panic selloff!
Sales increased 85% over same qtr prior year. The balance sheet is mostly cash and receivables, no long term debt. Current ratio is approx 8:1. The company's sales have approx doubled in each of the last five years. Sales and earnings are expected to continue increasing. The company has contracts with most major telecoms. Further, Cisco Systems owns approx 4.4% of OSII. How can it go wrong?
See the following websites for more info:
osi.com
ipo-network.com |
