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6 pts

Opinion on  Oplink Communications Inc. (OPLK)     Sector: Technology  >  Industry: Semiconductors
A huge cash hoard for acquisitions

Sep 26, 2006 02:49 AM GMT
Return Risk
+0.82% HIGH
Associate

Oplink has almost $9 per share in cash, and the cash pile keeps growing every quarter.  That's because the company has been profitable for several quarters now, and interest income has boosted net income as well.  They have a forward P/E of about 16; valuation of Oplink on a P/S basis is misleadingly skewed due to the large cash balance.  i.e. The cash inflates the market cap, which distorts the ratio of market cap to sales.


OPLK:  This call was made on 09/26/06 @ $19.93
Rating:   Positive   $19.93 (09/26/06)
Gain/Loss:   -14.35% in 1164 days


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