Louis, agree with you on ORFR. I think next year should be excellent for ORFR. I have some connection with people working in the Teledesic project (a consortium between Boeing/McCaw Cellular/Microsoft to launch a bunch of telecom low orbit satellites) and they told me it will be started next year. Irridium just launched their satellites. Cell phone is big right now. So all those companies are going to buy test equipment from Orbit/FR. They're probably doing it right now, but the revenue won't be factored until next quarter.
The IPO that I just swap my ORFR for is Castle Dental (CASL). They manage dental offices in the South of U.S., very profitable co., yearly growth rate around 65%. IPO came out on 9/12/97, quiet period will end next week on Oct 7th, earnings due to be reported any time soon. Current PE around 50, forward looking PE around 30 based on growth rate. Stock has been pretty much flat around $14 since IPO, but should jump after underwriter promotion and good earnings.
For comparision with other co. in this sector, take a look at Monarch Dental (MDDS), another IPO that came out a couple months ago. CASL seems to follow exactly the same pattern as MDDS. MDDS was flat at $15 during the quiet period and then took a spike to $24 in a few weeks after promotion and good earnings. I expect CASL to jump to $24 also in about a month for a better than 50% gain. CASL is a little bit smaller than MDDS, but has better earnings. MDDS has PE of 100 versus CASL's PE of 50.
Another company in my local area is Gentle Dental (GNTL), 52 week low is 3 something, current price is 16 something
The dental office management sector is currently in favor. Most of the stocks in that sector have performed well. Good growth rate.
I plan to start a thread on CASL this weekend but the IPO Central site is currently down, cannot get the data to start the thread yet. But stay tune for that thread.
Regards,
Mike. |
