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Microcap & Penny Stocks : Ocal Inc (OCAL)--a roll-up -- Ignore unavailable to you. Want to Upgrade?


To: muffy who wrote (2)2/22/1998 9:40:00 PM
From: LPasko  Read Replies (1) | Respond to of 8
 
Muffy (I'm not following you around--I just chanced on this thread and here you are!), the low stock price is not so mystifying if we take into account OCAL's declining sales year over year, and its declining profit margins due to extreme price competition (or so says the last press release). Before I conclude that acquisitions in the same industry would help, I'd have to know the purpose of the acquisitions--i.e., why is bigger better? If acquisitions give them technology they don't have or allow for cost savings through greater economies of scale or create a more favorable product mix, they make a lot of sense. The key is whether earnings will increase and why they will increase--what's your view of this?