So, Ceragon a Believe the Bulls?
Yay! The economy is back.... Stock Market is at least stabalized and things are making sense once again.
And I found my own personal signal that I need to go from "Extremely Bearish" to now "Bullish."
1) Alstry is now thinking of becoming positive and optimistic about the future as long as restructuring of debt is in the cards for companys hurting like GM...
2) (CRNT) after projecting bad earnings for Q1 of this year also reiterated increased activity in North America. In just 2 days after their Pre-Earnings Release Conference Call, the company issued a Press Release revealing a $6 million dollar purchase contract for their Microwave Networking Technology.
CERAGON is one of the companys whose share prices got hit hard and before any other company started to feel the recession hit. So, I predict it will be a rocket ship in due time if this single press release truly spells a "bottom" for the company's sales revenue woahs.
Despite the Share price get slammed hard since Q4 2007 (in which the company had to exercise major share dillution), Motley Fool Caps All Stars have been keeping the stock solidly as a 5 Star Stock. I think those All Stars are in for a CAPS Points Treat in the next few Quarters.
If you viewed a Verizon, Cingular, T-Mobile, Sprint calling map that showed how many bars you get based on where you are in America you would see that every single Cell Phone company has a large amount of room to grow..... CERAGON sells Microwave Networks that give you a more powerful signal to reach out to wider areas off of Smaller, cheaper Antennas.
This technology has caught the eye of a major network willing to fork over $6 million. This is so BULLISH for (CRNT) that the share price has already, almost completely rebounded from the major sell off 2 days ago when the Pre-Earnings disappointment was revealed. I fully expect this to trade above $5 a share before closing bell next week.
You see.. Other major network companys are going to know about this transaction and if they don't have Ceragon's technology and they want to cut expenses....They will see the long term benefits for spending the cash NOW to re-build themselves a more powerful, and more cheaper network.
It really only takes 1 Contract to start the rally of landing your next contract and your next...