Optical Cable Corp.’s stock price appears to be an incredible bargain at merely $5.11 a share at the beginning of the third week of May 2008. The Price to Earnings Ratio is less than 13. The company, based in Roanoke, VA, is a pioneer in the dynamic optical cable segment. It may be one of the best stock investment opportunities in the Basic Materials Sector.

The U.S. military has been one of the biggest consumers for optical cables. Defense demands will continue to grow into the foreseeable future because battlefields depend increasingly on electronic communications. However, it is the spread of the Internet to all corners of the globe, and its enveloping use in every part of modern living, that will fuel tremendous growth for optical cables.

Optical cables are used for transcontinental communication links. These cables are laid on ocean floors. There are many new countries that need submarine (or ocean-based) optical cable connections. Leading nations such as Japan, Russia, and the United States, also require additional optical cables to meet their data transmission needs. Large corporations with multiple sites, government agencies, and universities with sprawling campuses are significant customers for optical cables within each country.

This company has an impressive financial record to go with the extraordinary business potential for its domain. Earnings per Share have grown by more than 38% over the last five years. The Gross Margin has averaged nearly 37% during this time. The Most Recent Quarter has witnessed a smart acceleration in top and bottom lines. Quarterly net income has grown to over $850 thousand against a loss for the same period last year. Net sales have jumped by more than 36% during this quarter.

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