Osicom(FIBR) Message Board

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Technology Stocks : Osicom(FIBR)

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To: Area51 who wrote (8106)	8/23/1998 12:02:00 PM
From: David Wise	Read Replies (2) of 10479

If I thought that all charts could be used to indicate future direction I'd be out of FIBR now. Of course if that were true, I'd soon be able to retire, as would every investor. Fortunately for us, trends do reverse. Usually this coincides with news of better earnings, sales or technological improvements. So to me news or fundamentals are predecessors of chart movements which is why I'd rather be there at the bottom and ride it up than jump on after some chart indicator makes it a "buy". I've always wondered how many people consistently jump into stocks at the top of these charts, only to ride them all the way back down. One comparison I noticed between CIEN and Osicom is the Price to Sales Ratio. Ciena's is 8.4. Osicom's is about .25 (or 1/4 v. 8.4). If Osicom had a P/S of 8.4 we'd be up to about $134 per share. Of course Ciena has shown good earnings and not just sales. Obviously this is what we're looking for from Osicom. But Ciena's earnings could be reversed very quickly due to competition and loss of contracts. Similarly, Osicom's negative earnings could reverse with the right contracts or news. Maybe we'll pick up AT&T.

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