Harmonic, Inc. (HLIT)

Following bullishbabo with this one.
See excellent pitch by holyemo.

Caps 5, StockScouter 10

product performance

insider buys. chart trend.

Good balance sheet and room to grow.

bullish.

Fundamentals are sound, Zero debt, Excellent Balance Sheet. Well positioned and in demand in an expanding market.

Harmonic has accelerated innovations in its product line through strategic acquisitions. The result is higher demand for its products which now carry higher margins. Its new CEO, Patrick Harshman, has shown he has the savvy to take this company to an whole new level.

One of several "technical" plays i've got going since the floor fell out from under my portfolio. Harmonic, Inc. makes the things your cable provider needs to put the whiz-bang in TV - hdtv, video on demand, time-shifted tv, etc. So, I shoot to play the volatility, bought at $6-$7 am shooting for the $10-$11 range to sell. For now....I will reevaluate in the pre- and post-Christmas time periods (assuming I remember) for potential to cross 7-year high of $16. Stock is highly volatile since 2002 low of about $1.30 having rose over 800% to over $12/share 17 months later. From that peak it was down to $5 within 6 months and up again to nearly $12 the following six months. After that 6-month 100%+ move, the price moved within a range of 50% between low and high for the next year, and then peaked a bottom at $4 in the middle of 2006. From this bottom, the price moved 150% over 8-month period, then peaked at about $12, hit $7.5 and moved to $10, and then got caught in the whirlpool effect of fall 2008. I bought at the big drop in late Oct, and am holding out for relative strength in hdtv/etc. in an overall weak holiday season. The company itself has significant liquidity reported in quarter-ended Sept08, and also reported a doubling of profit margin - which may be a seasonal effect, I did not check (like I said, I don't intend to hold it very long).

Cable spending holding up better on relative basis than teleco's; video delivery play beaten up too much by the market -grower with attractive metrics for new buyers around $6 - 20% historical ROE with forward p/e roughly half. Strong balance sheet - likely cheap here for patient longs unless they make a poor (i.e. non-accretive acquisition) in the next year.

I love the HDTV rollout and HLIT will be major player in this area.

I also agree that this is a good company - Good financials. However at this point, with all the fear in the market, if it's not gold, if its not oil, this stock is going down.

Buy at $8

Less than one billion $ company in the growing on demand market - has a high short ration of 12 days - if performs a short squeeze could develop.

On demand video services - nice trend

Strong sales prrojection for this quarter

I like the below $10 price and its potential for a good return.

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best in class tech

Long term star. Good return and a solid investment.