Orckit Communications (OTCPK:ORCT), a leading provider of advanced telecom equipment targeting high capacity broadband services, moved up over 9% during Monday's trading on the hope of an announcement of a new client. Since Orckit was named as one of IsraelNewsletter's Labor Day specials, the stock has soared more than 30%. Monday’s rumors that Global Crossing (NASDAQ:GLBC) was going to announce a deal with Orckit in the next few weeks, has helped investors regain some confidence in management.
For months, management has been saying that they are about to sign a new customer, only to continue to delay their announcement. As a reminder, right now Orckit only has one customer, KDDI, which is not exactly the way to grow a big business.
For all you traders out there, the stock has done very well during the 4th quarter over the last 3 years, and I would expect the positive momentum experienced over the last month and a half to continue.
Disclosure: The author has a position in ORCT as of October 15, 2007, has no holdings in any other stock mentioned.