Ann: FY2014 Appendix 4E and Financial Statements, page-3

Jaguarpaw

Commentary from the company came out during this week that "momentum is continuing into FY2015" and also "we expect solid growth in all business lines". This may have inspired some buying??

What is interesting is that most companies would capitalise at least some of their R & D expenditure. Yet OCL expensed all $9.7m of R & D, this is an astonishing 170% of NPAT. Hence an argument could be mounted that profits are being understated. I also like the fact the CEO (who controls the company) pays himself a modest salary of $356K, always a good sign for minor shareholders.

Margins are on the rise, and prospects are good. However, the question I keep asking myself is: Are we seeing OCL operating in a sweet spot right now, or is this phase becoming a permanent step-up in earnings, bearing in mind that earnings have been at these levels before? As always, it pays to remain vigilant, in order to answer this question.