May 26, 2006
SpeculatingStocks.com Stock Pick: Optical Communication Products, Inc. (OCPI)
Stock Price: $2.17 (short-term strong buy)
Optical Communication Products, Inc. designs, manufactures and sells a comprehensive line of fiber optic subsystems and modules for metropolitan, local and storage area networks. The company's product lines include optical transceivers, transponders, transmitters and receivers.
OCPI reported revenue of $18.34 million for the latest quarter, up 35.6% over the same period last year. Gross profit came in at $6.37 million and net income at $2.13 million. Net income improved over a loss of $1.07 million in Q205.
OCPI has an amazing cash position of $148.3 million. The company is sitting at a market cap of only $245.88 million. OCPI cash value per share is $1.30.
There are 113.3 million shares outstanding, but only 19.90 million shares in the float. Insiders are heavily invested in OCPI with insider holdings of 82.25%. This stock has strong support at $2.00.
SpeculatingStocks.com Target Price: We expect OCPI to reach $3.00 within the next 15 - 30 days.