Replies to post #434179 on Zeev's Turnips Patch-No Politics (ZEEV)

[alohamart]

I understand. Keep in mind that ORCT has a history of being conservative in their guidance. In July, they guided down to .23 EPS for this quarter they just reported at .30, and virtually all of that was from their one customer. ORCT was trading over $28 before the warning: http://www.thestreet.com/_yahoo/markets/stocksinmotion/10232935.html?cm_ven=YAHOO&cm_cat=FREE&am...

So the stock drops from over $28 to the current $21's because of their downward guidance that they just blew out. Now, the one customer risk is gone since they've added the U.S. customer and have several more in the works. They've also paid off all their debt.

I think it's stronger and will be stronger short term than many expected because of the huge improvement in fundamentals over when it was $28+. Many analysts from many firms were on the cc, but only one has been covering it. That one had a target of $34 before earnings, and likely will increase that substantially. Others should initiate coverage soon after getting their position.

I don't want to hype anything either, but I think people are underestimating this company because of the unwarranted selloff last week.