On 14th Jan, after pre-announcement , they maintained hold and saying impressed with results but stock is expensive..
looks like they accumulated shares in 1.8 ( old peak ) to pull back range ( 1.4 ) and today upgrading the stock to Buy..with particularly no change in share price..
PE comes later in valuation..first comes the market cap. company growing with 25% and GM 75-80%..and expected to be profitable for whole year..
Starting point is 2 * Sales+ cash = 100 million
Once they start showing the results..it normally peaks in 4 or 5 times sales..
So it can go up to 200-250 million market cap..
Extrapolate share price accordingly.
I am in with 20k at 1.47 ( bought 10k at 1.46 while back and another 10k today at 1.48 ) . If in tomorrow's call they give some specific evidence of revenue growth ..how MSO contract or Verizon contract are going and will contribute to revenue growth..it will begin it's upward trajectory. otherwise another 3 months wait..
Currently they r doing right..new product portfolio towards cloud and flash..growing sales through partnering ..Spending on new products is already done..if they can bring little bit sales from this new product ..with 75-80% GM..bottom line will be huge..
Last 2-3 weeks ..lot of press about CableVision Freewheel service and Google also tying up with Sprint/T-mobile to use their network as MVNO
Clearwire..smithmicro relationship started in 2011-12..sprint came and then now google coming
Cablevision starting Freewheel service in NY in Mar'15..and the handset is android based..
Both are android based handset provider starting in the area of wireless/wifi..and smithmicro ideally fitting in based on past relationship and press releases..
Just speculating..may be true or not..time will tell..
Though I sold my position at 1.7 initially 2-3 weeks back ..but above development makes me re-thinking of entering back...
technically 50 day has crossed 200 day moving avg..and both r rising..so uptrend has been established..
I never mentioned about buying at 1.65
Bulls make money
Bears make money
Pigs gets slaughtered.
yes..it may go to 2..no regrets..happy with my gains..
If it retraces back, sure will look into it.
Google on ' Nokia dragonwave Taylor' .. Second search ..Will give u glimpse of Nokia dragonwave relationship is bringing coming year ..2011 ..nokia business when it sold microwave business to dragonwave was 64 million/qtr .. If they just get back to that, even low margin, but bring huge profitability to dragonwave as opex has already cut to min... Also issues going on at CRNT may turn out in Dragonwave favor....Crnt pain drwi gain
Nokia is growing market share on small cell front..If DRWI product is in Nokia product portfolio..it will be only company whose revenue will be growing q-to-q and also on yearly basis..watch out if it comes true ..how wall street will spin it ..
watch out on 01/13/15..where the things go..