Allot Communications Ltd. (NASDAQ:ALLT)

Mobile and communications SERVICE. I feel that a "service" has longer legs than software. Other companies can copy then alter that software. However service as a whole is a lot more expensive to "copy" and even harder to do well. Technically, though, this is a damn good entry to this stock. Would not be surprised to see a lot od insiders aquiring come next report. Prolly exit around 21ish then go down then the people that gets the "breaking news" that it bounces will enter again when they see it dip to bout 20 again hoping to hit 30 and get a quik 50 percent.

I think Allot is losing out to Procera in many instances, but as the lead contender for Verzion's DPI business as it unveils its "6 strikes" policy and the possibility it is preparing itself to be acquired -- it announced it was repaying its Israeli OCS R&D grants back early (the loans prevent a sale of the company to foreign investors) -- I see its new, lower price attractive.

ET Screen "$, 20% 52 low"

Analyst downgrade causes the share price to plummet. Nice entry point here.

Sells telecommunications equipment to Tier 1 providers with Deep Packet Inspection. Allows Telecommunication providers to hold off buying more expensive equipment by prioritzing data.

israeli company .

this company is positioned to provide other companies a means to control and understand the data output and customer networking usage...In this new age of smartphones, tablets, laptops, etc...networking is never been so inceasing important. And with this company's help purhasing companys' can essentially save money through a better understanding of how cust are using data and adjust accordingly. companies like this will become more and more important over the years as we move forward with everyone connecting everywhere and with everything.

low PEG, strong price uptrend

A smallcap chip company out of Israel with a good presence in the international community, but virtually nothing in the US. They have a lot to offer and are just at the tip of the iceberg in the US.

Getting the internet up and running is their game. Nice looking chart.

gaon reccomends

$75M cash position is 70% of current market cap. $8-$9 stock

Co has $37M in cash, zero debt, and just rolled out their first ISP service in the Far East/Asia. Mkt cap/stock is undervalued here.

Almost $4/share in the bank, trading below $8, 77% gross margins, market growth rate above 30% a year for the next few years, telecom capex in a resurgence, so cheap it is a takeover candidate from someone like Juniper!!

strong positioning

Not the best stock out there (I've successfully shorted it here in CAPS twice already), but today's sell-off is too drastic. It's actually enough for me to go long on Allot.

Just for the short term ride back up and then back to underperform he shall go!!!!

Allot Communications Ltd. (Allot) designs and develops broadband service optimization solutions with DPI (Deep Packet Inspection) technology. These solutions enable the operators to identify, classify, prioritize, and shape network traffic thereby enhancing the performance and profitability of WAN and broadband services.

The operating performance of the company displays some traction. For the fiscal 2006 its top line increased by 49% and it showed a marginal net profit as compared to net loss of $2.4 million.

Globally broadband is growing at a very rapid pace and along with it the network traffic is also growing due to new bandwidth intensive applications such as P2P, VoIP, and CRM etc. However not all applications which hog the bandwidth is lucrative for the network operators. For example P2P applications which hogs 50-60% of network traffic generates very little revenue for the operators. Here Allot comes in the picture with its solution as they arm the network operators with intelligence that enables it to understand the components of network traffic much better. This ensures better service to lucrative segments like VoIP driving both profitability and customer satisfaction.

Network operators have compelling reason to adopt DPI technology and hence it is reasonable to assume that the company will piggyback on the success and broad based adoption of DPI technology.

The valuation of the company is rich. However the company seems to be on the cusp of exponential growth. It has the technology which is proven and operating environment seems to be promising as it gains traction. Hence considering the possibility of quantum leap in its earnings it may outperform.

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