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Player Avatar NeroSagetrade (91.71) Submitted: 3/6/2008 8:20:09 PM : Outperform Start Price: $2.40 PWAVQ Score: -157.21

Powerwave Technologies may be at a respectable valuation for the first time since it became listed over a decade ago. PWAV is trading below both its book and sales valuation with an expected profit of 27 cents in 2009 for a forward price to earnings of 9. The thing that really stands out about PWAV, other than its erratic earnings reports, is the fact that nearly 1/5th of their business comes from Nokia, and Nokia has been performing more solidly than any of the other handset providers recently. As long as Nokia and Siemens continue to perform well I don't see much downside from here. Historically as well PWAV is nearing an all-time low on their chart with what I would call strong psychological support at the $2 level. I don't know if anyone would be so giddy as to consider PWAV a buyout candidate with 300M in debt, but at these levels, consolidation in the 3G sector seems highly likely in 2008/2009.NeroSagetrade

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