The stock will dig deeper into the $2 per share and $2.60 is not unreasonable by September. My projection is that GILT will be below expectations on Q2 and Q3 will be a tough quarter. But I will have to buy more shares on the way down because I believe the price will become attractive for a buyer for the company.
Your projections assume that Antebi didn't know what he is talking when he reaffirmed Gilat's targets for 2012 "to deliver a slight increase over last year in our annual revenues of between $340 million to $350 million and while continuing to invest in future products, maintain our EBITDA margin levels at 10%." during last conference call. If Antebi is right, the stock can easily return to 4-5$/share right now, and go much higher on some significant news, like large KA band system deployment or some positive results from working with Russia. IMHO
I don't think so. What you see is the result of rather small float, since the majority of shares are in hands of few institutions. Once however some good news will come, the same small float can cause a rapid increase. IMHO