AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Byline: KEN HOOVER
After breaking out in July 1994, StrataCom became a screaming winner. And the stock had a pleasant surprise for the investor who stayed in perhaps a bit too long: The company got bought out.
StrataCom was the leader in technology to transmit voice, data and video through wires. It bet on a technology called asynchronous transfer mode.
It turned out to be the fastest and cheapest way to transmit data. AT&T and Motorola were among its biggest customers. With the Internet in its infancy, it was a terrific investment.
Quickening Growth
In the four quarters before beginning its big move, earnings grew 33%, 30%, 50% and 82%. Sales were up 31%, 27%, 36% and 61%. That's acceleration. It didn't have a five-year growth rate, since 1991 was its first profitable year.
Other strong points: StrataCom's Earnings Per Share Rating was 81. The Relative Strength Rating was 97. The Accumulation/Distribution Rating was B. The return on equity was an above-average 19%. The Group Relative Strength Rating was 66, with five stocks in the group having ratings of 96 or better.