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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (5283)	2/9/1998 1:30:00 AM
From: David Y. Yu	Read Replies (1) \| Respond to of 10479

I agree wholeheartly about your assessment about Osicom that for this co. a revenue is more important than a profit at this point. But I was talking in general term about assessment about a company that a profit is more important than a revenue. Regardless of a increasing revenue, if profit does not follow a similar line(i.e. if company spends proportional amount in R&D w/ exception of reasonable expenditure for other expenses such as a merge or a takeover) there is a problem at sales/cost ratio or a problem in management. IMHO, generally a good gauge for a co. is their profit indicator rather than their earning. Once again, at least for me I agree w/ you that this doesn't apply to the company like Osicom who has turned corner w/ a tremendous market potential. BTW, I have been studying Osicom's chart for a while and observed that their ascent line for 30D is stabilizing at 5.15-5.40. I don't expect any significant action for a while until 3/5/98, although their STO. chart looks fairly volatile and up swing. What do you think?

To: Mama Bear who wrote (5283)	2/9/1998 10:11:00 AM
From: bill banks	Read Replies (1) \| Respond to of 10479

barbara--i would agree that we should be very concerned about a return of the rev side of the equation to the 35m. level, but i take issue with the assessment that earnings are not a very important issue. the absolute ability of any co. especially fibr in light of the attacks from the shorts is to be able to manage the sga side of the equation in such a manner that they are able to drop very positive earnings to the bottom line. if not then what has beeen achieved???

To: Mama Bear who wrote (5283)	2/9/1998 10:15:00 AM
From: David Wise	Respond to of 10479

Barbara, this is something I've commented on before. I don't remember the stats, but remember a study of companies with Price/Sales ratios of 1 or less. These companies as a whole greatly outperformed the market long term. FIBR was as low as .47 not long ago, and is still below 1.0. Also, I agree that for management and investors the revenue growth is most significant, given the growth stage of this company. Of course for immediate stock price growth, eps would probably be more impressive. Although institutional investors could push a small company like this right on up in no time if they believed high revenues were in store.