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Technology Stocks : Optimal Robotics Corp. (OPMR) -- Ignore unavailable to you. Want to Upgrade?


To: Stu Bishop who wrote (145)1/24/2000 5:17:00 PM
From: Thean  Read Replies (2) | Respond to of 325
 
Stu, since you insist, how about the following:

Expected multiple = 1/2x to 1x next year growth rate.

Say they makes $1 next year and their estimated growth rate (say take from available analyst estimate) is 50%.

My model would say they should be fairly priced in between $25 and $50. Still, we have to wrestle with the question - what is their next year growth rate? This is a moving target each year because OPMR is still growing and there is no rigid boundary to their operating market size yet. That's why I think it's best to track factors that impact its development and maturation rather than to judge whether OPMR is fairly/under/over-valued at any given point. For example, an announcement of Walmart commitment to order 200 USCAN will change the landscape overnight. So would if Kroger announces they decide to stop ordering USCAN.

If your objective is to trade OPMR, use TA to guide you in periods of no news (typically 2-3 months). Right now, the support is at $29 and resistence is at $36. Until this range is broken, OPMR appears to be in a limbo state being pushed around within this range.