is anyone out there, page-7

Promising time ahead for OCL.

The company is really positioning itself to cash in on the move by enterprises to use software-as-a-service. Short term revenue growth may be lower, but the pay-off is annuity style income for years ahead.

Bigger player, TNE, goes from strength to strength. It commands a Net Profit Margin of 14.5% (and says this is likely to improve), superior to OCL's 10%.

However, OCL are committing 23% of revenue to R & D, while TNE is pulling back below 20%. (TNE state that the industry average in 10 - 12%). This should give OCL some IP clout to command some pricing power for its quality products.

OCL seems to have gone unnoticed by analyst (so far). While TNE trades on a forward P/E of about 24 (assumes EPS of 10 cents), OCL trades on a forward P/E of about 15 (assumes 5 cents EPS). OCL has stated 2H2014 is expected to be stronger than 1H2014.

A re-rating is underway IMO.