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Technology Stocks : Orckit (ORCT)

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To: savolainen who wrote (802)11/18/1997 9:39:00 PM
From: Brent D. Beal  Read Replies (3) of 1998
 
New to this thread. My main concern, after having spent all of about 15 minutes looking into this stock is the high valuation. I notice that earnings would have to grow at a 100% clip quarter over quarter for the next year or so before this stock would have a forward p/e of 40--seems pretty rich at these levels, given the uncertainty involved in marketing this type of product--unless the phone companies, as I read it, unite behind some kind of standard and then dump large sums of cash into infrastructure to support the technology, then I don't see a real big market for this stuff. Someone who knows something about this company, please correct me if I'm wrong, I'm just thinking outloud. I appreciate if someone who is long on this stock would try and justify the price at least. . .
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