James: I think the rise is stock price is due to the news about Q-to-Q growth in earnings. The type of price movement we got was the result (IMHO) of one or two institutional types buying the stock. My guess is that ~800,000 shares were accumulated during the period Sept. 25 to Oct 25, with only a little turnover. I wouldn't be surprised, either, if the funds were all in the same fund "family".
The relative sizes of the two companies (AURA and CMPT) leads me to think that the bulk of any serious R&D that can be done on PowerRack-type ISDN modems is probably going to come from the Newcom (AURA) side. The Aura thread here and on AOL had quite a discussion about his stuff; the bottom line was that the technology was good enough for now, but ADSL, et al. will displace it in 1998.
This is truly a Phoenix-like rise for a company that was, only a few years ago, on the brink of demise. If, BTW, the company can continue the same rate of profit increase into 1997 (assuming ~12-15 cts/sh next Q), this stock should be at ~$10 during the first Q of 1997. |
