Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 50 which we feel is a stock to watch.
Our selection for March is Ditech Communications (DITC).
Fundamentals:
|
DITC |
4Q 99/98 | 1Q 00/99 | 2Q 00/99 | 3Q 00/99 |
|
% Increase in Quarterly Sales Growth |
+102% | +91% | +348% | +385% |
|
% Increase in Quarterly Earnings Growth |
+200% | +300% | +488% | +1467% |
| % Increase in Quarterly Net Profit Margins | +4.2% | +10.2% | +31.5% | +34.6% |
Earnings Outlook:
Estimates for the next two quarters: 4Q 00/99 1Q
01/00
E .37/.02 E .33/.04
+1750% +725%
DITC remains in a very strong sector (Telecommunications Equipment Group) and is expected to have strong sales and earnings growth the next two quarters. The company designs, develops and markets equipment used in building and expanding telecommunications and cable communications networks. The Company's products fall into two categories: echo cancellation equipment and equipment that enables and facilitates communications over fiber optic networks
Other Ratings as of 2/29/00 include:
EPS: 76 RS: 99 ACC/DIST: A, GROUP STRENGTH: 99, Shares Outstanding: 24.4M, Float Shares 11.0M, Institutional Ownership 33% and Insider Ownership 44%. The average daily volume is around 940,000 shares. Next Earnings Report: 5/18
The recent chart of DITC shows that it has formed a classic Cup and Handle pattern
and looks poised for a major break out to the upside once the volume picks up
again.
February's Pick: INTT
amateur-investor.net
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***