PictureTel is as fine a technology company as one can find these days. The big question is why hasn't PCTL gone up the past 6 months? Well, people did take notice of PCTL since 2 years ago and the historical chart will show this clearly. There is really nothing wrong with PCTL, just that its high PE has to be worked off to justify its growth rate. If one plots PCTL's revenue and income growth rates based on past quarters and try to project into the future, one can clearly see that the trend is steady and up. If PCTL is to trade at PE of 40, 50 or higher, people better have a strong case of why PCTL will make so much more money in the future. The bottom line is PCTL is still working off the high PE that it has carried for a long while. The sky-is-the-limit of past is bygone. PCTL is being valued today as a mature business rather than a tech high flyer.
Now, as to its business, I don't think there is anyone even comes close to PCTL in dominance over the video-conferencing area. There are plenty of competition as in any business but who knows how to run a video-conferencing business like PCTL? Who has the distrubution infrastructure around the world like PCTL? PCTL management will not run its business to the ground. Remember, a newcomer with exciting technology will excite Wall Street for a few days but a company who is seasoned in its business will stay in the mind of Wall Street for a long time. People will remember PCTL and as long as one is a long term investor things will be better than fine over the long haul. But if one is a trader, this is a pretty good trading stock. But I would get in on the long side rather than the short side. One never knows when the big boys decide to come in (back) and ride this above $40 for good.
Alfredo, to start a new tread, all you have to do is to go to the category of interest, and for thinprep I believe you are talking about Medical/Biotech which is located in the Miscellaneous category. |
