Fritz Hottinger's  Instablog

Dear Fellow Investor,

We do not usually recommend stocks, particularly penny stocks.

But when OCLR closed at $0.57 on Monday 7/27, well below its Entry zone, it prompted us to investigate.    Here is what we found:

ü      Strong Balance Sheet

ü      No Long Term Debt

ü      G and A dropping quarterly, over last 4 quarters

ü      Cash Flow positive 3 of last 4 quarters

ü      Revenue up $66.9 mil vs $41.2 mil quarter over quarter

ü      Gross margin up 25% vs 21% quarter over quarter

ü      12 Month Net Loss $3.1 vs prior year $14.0

What’s not to like?   

ü      OCLR carries a beta of 3.9,

ü      has very significant competitors in JDSU, FNSR, OPXT,

ü      and most significantly, has no earnings.

Given all the above, we still would consider OCLR a Buy for Tuesday at price between $0.61 and $0.57 - - - and we would look to Sell above $0.71, for a gain of 25%.  Note: that Exit zone is certain to change over time.

DYODD  (Do your own Due Diligence) this is just one man’s opinion.

Author holds no positions in any of the above at this date.