SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : OCCF Manufacturer of FIBER OPTICAL CABLE NEW IPO uptick up
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Maxwell Fashola who wrote (8)8/7/1996 5:18:00 PM
From: Q.   of 21
 
More p.r. out of the co. recently was followed right away by a runup on heavy volume. Volume is as heavy as the last run that went well over 20. Co. attributes it to short covering and to an article in Virginia Business magazine covering the co. & CEO. Of course a few days ago the co. issued a release indicating the sales for a recent one-month period. I think this is the only time they have ever issued such a monthly sales figure.

If you figure they earn about $0.047 per quarter, which is typical of recent quarters and is consistent with the latest earnings pre-release, then at 19 this stock is selling at, look at this:

p/e = 100 (OCCF)

This is for a co. that has had fairly minimal sequential quarterly earnings growth since going public, and a 5-year average compound growth rate of 20%. This stock is selling for a PEG of 5.0.

For comparison, Spectran (SPTR) which makes optical fibers and has had >60% annual growth rates in recent quarters (this is faster than OCCF, although SPTR's growth rate may be a little slower in upcoming quarters due to running at full plant capacity till more plant comes on line), and it is selling for 14 with latest quarterly eps of $0.17. In other words it is selling for 75% the price of OCCF yet it earns four times as much per share and has a higher growth rate. Its p/e based on annual eps = 4 X $0.17 = $.68 is

pe = 21 (SPTR)

which is perfectly reasonable.

Based on these fundamentals, a pair hedge with a short on OCCF and a long on SPTR looks like a decent play.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News