Ceragon Networks Ltd. (CRNT)

Great balance sheet + presence in major emerging markets + some sweet new contracts = a speculative tech pick with tremendous upside potential. I bought this stock when it was in the high 7's range and it has performed well since then, I only hope it continues to do so!

Technology continues to expand in leaps and bounds on a daily basis. Finding companies to invest that are trying to maintain or jump ahead of technology are sound investments.PTP wireless continues to expand at an expedited rate and security interests need to be followed like Ceragon is doing.

To give time for CRNT's market to expand an become developed.

Clean balance sheet + emerging market (India)+ hot industry. Even Cramer can't resist now.

Cramer picked it! Ha ha! Really, I just want to watch this one.

Here I am, looking at a small cap telecom equipment stock. I'm pretty sure I went through a 12-step program about investing in this type of company 7 or 8 years ago. But I keep coming back. Oh well, don't tell my sponsor.

Ceragon is setting pretty I think. They make radio systems for wireless backhaul of communications traffic. In places with significant wired infrastructure (fiber and TDM leased line), wireless backhaul is an economical adjunct to facilitate cell splitting and to add additional unplanned capacity necessitated by the explosion of data traffic as smart phones become ubiquitous. In "greenfield" deployments, many systems will use wireless backhaul almost exclusively.

Ceragon has a technologically advanced product that works well for new deployments that want to stay native IP all the way to the base station, but their radios also easily accommodate traffic that is all TDM, and any mixed-mode combination in between. That makes it a solid choice for networks that are evolving toward IP, but need to support legacy signaling as well. In the all-IP space, there is competition from a Canadian company called Dragonwave, but that company has severe financial issues, while Ceragon has a very strong balance sheet. Big telecoms rarely place bets on struggling small companies. Harris Stratex is another competitor in waiting, but Ceragon looks to be out front and dominates the mixed mode application.

It is an Israeli company and it is small. Management to shareholder communication is above average for a foreign company and management doesn't shirk from describing problems/issues facing the business. The most severe of which is that the big telecoms love to stretch out their payables (Ceragon's receivables), meaning that Ceragon's cash conversion cycle is longer than I would like to see (go back to 12-step program and why investing in small telecom equipment companies is hazardous to your sanity).

Ceragon has strong business relationships in emerging markets. It also has a strong partnership with giant telecom OEM Nokia Siemens Networks (NSN). NSN has major contracts in India to build out infrastructure as wireless usage explodes in that area and Ceragon's backhaul equipment ties it all together. Recently, Ceragon's business is North America appears to be perking up. After several years of on-again/off-again negotiations with Sprint/Clearwire/... , the WiMax systems are now on Ceragon's back burner. Instead, the business is coming from Verizon as it begins moving toward adding LTE capabilities in its network. AT&T is scheduled to do the same next year and that will be another opportunity.

Ceragon is a risky small fish in a big pond. It does have good technology, has continued to grow and operate profitably through the recession, and has plenty of cash and no debt. I'll pick outperform over a multi-year timeframe, fully knowing that the next technology leap may be right around the corner. Yeah, I remember how this works.

the tech behind the wireless megaindustry

I think their technology is the next thing

EMA Cross

Can't resist. 1-3 yr hold. On the move

Wireless is strong for the long haul...i'm in while its down....

Re-upping here, this one's lagging the market rally for no good reason.

CRNT looks attractive to me on both a fundamental and technical basis after collapse to around $4. Debt free with rougly 44% of current market cap in cash; network connectivity should reboud - buy a 'grower" at a 'value" price for 3-5 investment.

Thought I'd snap up this Hidden Gem while its value is depleted. Wireless is the future...

Anticipate sell off - therefore expect falling tide to lower all ships, no matter how good.

Wireless is everyone choice now and in the future. Can't go wrong with this stock. Buy.

Calling a bottom

Speculative. Wimax is a good technology that is getting more and more traction.

Perfect entry point during the recent deleveraging of the markets. I've been in this stock at a much higher price, but cannot resist getting back in at $4.77/share.
1 yr growth = 49%; 5 yr growth = 45%; PE reasonable at 11%; Long term debt to equity = 0; 1 yr target est = 13.
Compelling entry point for strong value.