Alvarion Ltd. (USA) (NASDAQ:ALVR)

TMFUltraLong (99.98) Submitted: 5/9/2010 3:13:32 AM : Start Price: $2.81 ALVR Score: -96.59

This goes against my traditional metrics as Alvarion has not been successfully growing their revenues or profits consistently for almost 4 years now and their book value continues to hover around 210M, but their valuation is too compelling to pass up here. 103M dollars in cash with no outstanding debts means they are trading at just 97 cents over their cash value and less than 0.8 times book value. Alvarion is parked right in the middle of the highly competitive and highly in need of consolidation WIMAX sector. Alvarion to me is a prime buy candidate given its strong cash presence and history of breakeven to mildly profitable results. Really, the only drawback here is that they're based in Israel and anything Israel based right now has the questionable stigmata stamped all over it. Despite delayed customer orders in the early part of 2010, I see stronger demand in the second half of this year and I see a larger suitor making a play at Alvarion if it remains this significantly below book value. Notice I haven't even mentioned how ridiculously low it is on an RSI perspective making this also a great technical entry point. There's really no reason ALVR should be trading below $4 or accept a buyout for any less than $6.UltraLong