Ceragon Networks Ltd. (CRNT)

Collinsmeister (< 20) Submitted: 6/02/07 11:24 PM : Start Price: $9.80 CRNT Score: -5.23

No body wants to be cut off and in isolation. Growth--intellectual and material--cannot take place if you cannot communicate with others or be reached by others. Yet if, like so many billions of people today, who live in undeveloped countries where there is no techno infrastructure--no cables, no phone lines, no fiber optics--what is one to do? Here Ceragon steps in. With their technology it is no longer necessary to spend the time and money to install the older style infrastructure. Instead, it can be accomplished with their 'backhaul boosters."





Here's a description of the company and what it does from a recent 5/15/07 article:





"Ceragon Networks Ltd. is a leading provider of high-capacity wireless backhaul solutions for cellular and fixed wireless operators, enterprises and government organizations. Ceragon's modular FibeAir(R) product family is recognized as the gold standard for backhaul transmission and is also one of the top solutions chosen by cellular operators for SONET/SDH rings. A scalable, future-proof solution for wireless transport of broadband services, FibeAir operates across multiple frequencies for IP and SONET/SDH protocols, supporting the emerging needs of next-generation networks that are evolving to all-IP based services, including triple-play. It leads the market in IP backhaul, offering a unique, native IP solution that provides the efficient, robust connectivity required for WiFi, WiMAX and converged networks. Ceragon supports its growing base of more than 180 customers in 70 countries by operating an extensive sales network comprising 17 offices and numerous partners located around the world. More information is available at www.ceragon.com."





David Gardner suggests, and I think rightly so, that among other things, when looking at a company we should ask the simple question: "Would I want one of those?" Here I think 99% of the people on the planet would say, "Yes, I want access to the WWW, to phones, etc.." Ceragon has a product that will allow this to happen with less money and less time, which has got to be very attractive to all developing countries who, necessarily, are tight on cash, but are looking for ways to bring their countries up-to-speed. I also think that a stock like AMX, which has more than doubled in the last year and concentrates on wireless service throughout Latin America, is a good indication of how strong a demand there is for products like Ceragon's to take hold and spread quickly. I also like, as others have mentioned, the growth predictions of (Zack's) analysts: 07=97%; 08=33%; next five years = 24%. Moreover, this last figure should be juxtaposed with the expected growth of the industry itself, which is only 17%. In other words, the analysts are expecting Ceragon to consistently and handily outperform the industry for the next five years. Add to this the low number of shares that are available--27.4M--and it seems safe to say this stock will continue to rise.





Finally be sure to read the very intelligent and more sophisticated analysis that "ianlenobel" lays out for Ceragon in and among these bull pitches.

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