Orckit Communications Ltd fka ORCT

[midastouch017]

Did you notice what happened to Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT)? Why did the share rise? It rose because of a rumor, which has been around since the share hit a low point, by the way. The rumor might be right, but it has nothing to do with the Israeli company’s current business circumstances. The rumors say that Cisco Systems Inc. (Nasdaq:CSCO) is about to buy Orckit. Yesterday’s rise was solely due to the acquisition of M-Systems Flash Disk Pioneers Ltd. (Nasdaq: FLSH), and was unrelated to any business event on the part of Orckit. It was pure speculation. The only important thing for me is to explain again and again to anyone buying Orckit on a day like yesterday that they must understand that it’s a roulette chip. In contrast, anyone who bought Orckit the day before can say that he or she bought the share because of the quality of the company.

Published by Globes [online], Israel business news - www.globes.co.il - on August 1, 2006

http://www.globes.co.il/serveen/globes/docview.asp?did=1000118592&fid=1052

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