Wimax stocks on sale
The recent sell-off has made the two Wimax stocks attractive at their current valuations. The more you read about Wimax the more the question shifts from ‘if’ to ‘when’ Wimax will become reality. However, both companies mentioned below are still not profitable and might not be for a while. However, here’s a good chance to get into an emerging technology stock before the technology goes mainstream.
The two companies that will benefit the most with the upcoming Wimax revolution are:
1. Alvarion Ltd. (NASDAQ: ALVR) - Is the best of breed in Wimax and has partnerships with big names like Intel and IBM. The stock is near its 52-week low and is worth picking up if the weakness continues. Also, an acquisition play for big players who don’t have a strong Wimax portfolio such as Cisco.
2. Airspan Networks, Inc. (NASDAQ: AIRN) - A more of a pure play Wimax pick. The downtrend started with a higher than expected loss last quarter which was attributed to $5.5 million revenue deferral from Yozan Inc., a primary customer for its WiMAX deployment in Japan. Also, one of its Directors, Matthew Desch, bought 4900 shares on 5/19/2006 for an average price of $5.613. Just like Alvarion, I think the size of this company makes it a acquisition play as well.
Full Disclosure: I own stocks of Alvarion and Airspan.
May 26th, 2006 at 1:19 pm
How are you able to quantify the growth of Wimax? Can you name any major project proposals for either company?
May 30th, 2006 at 10:38 am
It’s hard to quantify right now since the certification process is still going on. Both companies are working with various vendors right now, as you can see by the various news releases. However, the main growth period is still likely to be end of this year or next year.
July 15th, 2006 at 3:13 pm
John, Airspan (AIRN), a company I picked for the first edition of SINLetter back in August 2005 (and is currently hurting my model portfolio) signed a $10 million contract with India’s Tulip IT Services in May. It also signed a $1 million contract with Ecuador’s PuntoNet in July. However until its problems with its largest customer Yozan are resolved and liquidity issues are addressed, the stock is likely to languish at these levels.
The best source of information I found for WIMAX contracts and equipment manufacturers is http://www.unstrung.com/
May 1st, 2008 at 7:42 am
how can i buy stocks for WiMax