Starent Networks Corp. (STAR)

Mad Money - Cramer Pick

Man, i only wish i had picked this stock in real life. The CSCO acquisition makes sense to me, CSCO has bought a quality company with a lot of upside potential

This is part of the mobile internet index that Cramer is touting I looked and figured what the hay its worth a shot to see if they grow they way he thinks they will. His thesis is that the mobile internet while be as big a game changer as the original internet was. Being a CTO I do not think it will be that big a movement but it will provide enough growth for his index to work just not be the huge bust out he thinks it will be. What your looking at is replacing every cell phone and laptop with a device that can connect to the internet at broadband speeds form just about anywhere in the US. The only problem I with his choice is that he left out HP and DELL and Lenovo the big laptop makers they will have a play and I am including them in my version of the index.

If it can break through the 20 day it will continue up up up. Nice nich market in the transistion from 3g to 4g!

Acquisition target. Great momentum and relative strength. Holding long-term.

I have been watching this stock for some time. I think it will go much higher. All the "stars" are aligned for it.

Based on 2008's figures this looks like a good value play. However, their free cash flow since 2004 reads as follows (in millions):

-5.7, -1.3, 21.5, -0.9, 138.4

So the value of the company is skewed by the record growth of 2008. This is enough to keep me from putting real money into it, at least until I can see how 2009 goes for them. Q1 was pretty good with net income of 12+ million but I need to see some signs of positive cash flow this year before I invest.

Adding to CAPS though as I still think they can beat the S&P 500 and this still could be a future value play.

nothing but up.

testing top 12 1yr gainers

IBD gives this a 99 Smart Select rating and the ROE is above 14%, which is what I was using as a benchmark during the last runup. I'm assuming that the market has corrected and that upward motion is coming.

-Big insider sell off late Jan 09 - mid Mar 09
-A competitor, Alcatel-Lucent Ads (ALU) appears to have a superior product and could bump Starent from it's position with Verizon.

speculation but I'm betting on 10-12 in coming weeks

Part of the infrastructure stimulus spending. Cellular carriers are buying their data routig hardware and software. Ended 2008 with record sales and revenue, growing base of cellular systems around the globe. Giuded for double digit revenue growth in 2009. Have large well-funded carriers as customers. Good sales visibility. Verizon biggest US customer, servces carriers in China, India, and Europe as well. Their technology is very scalable and flexible and already being tested in 4G systems, giving them a competive edge. Their s/w & h/w is located at towers and is resposible for receiving data which it breaks into packets and moves onto the internet. They track the packets (which services are being used) to facilitate billing (revenue) and customer management.

makes things we use all the time in cell phones

This relatively small but growing company plays a major part in a giant wireless nitch business called wireless infrastructure. They sell to most all of the big wireless service providers, both domestically and internationally. Their products allow these service providers to support the latest and greatest functionality demanded by their customers today and into the future.

target is 11

there is a gap on the chart at $27.00 and this stock will fill the gap in 5 or 6 weeks. It is a good value stock for the long term pull too.

Takeover target?

The company is going from strength to strength and is very aggressive in its approach to capitalize on the mobile wireless market.

Its a very bright future for the company.

Posted positive Earnings surprise recently. Good earning history.