Tekelec (NASDAQ:TKLC)
The Company is a global provider of telecommunications network systems and software applications, which it designs, develops, manufactures, markets, sells and supports.
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Recs
Enterprise value - earnings right around 10, with plenty of room for growth.
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Long term growth story. Potential buy out by one of their customers. Just need to make sure their technology R&D keeps up with industry trends. Buy on recent weakness.
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I checked my phone bill and noticed my daughter had sent/received 3,143 text messages in a month. This company will benefit greatly from this text messaging craze.
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Go Cramer!
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Like chart pattern on this. $18 first target. Long term target $24
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mobile internet
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Tech pick.
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The future in Information tech will push this stock through the roof. Considering the amount of companies upgrading from paper to silicon for faster information sharing.It's in high demand and fast growing.
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Asterism Output:
12.9/14.3
12.5/14.6
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Large orders in works that will come through in Q4 and Q1 08 which will finally put stock on track. Solid cost controls will show high growth in spite of tech slowdown.
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Earnings will get a short-term boost when Tekelec unloads their Switching division (with its continuing losses), but the low book-to-bill of their Signaling division indicates they can't maintain their current revenue levels (they're currently cannibalizing backlog). In addition, zero/low margin projects keep getting pushed out (in terms of revenue recognition), and those chickens have to come home to roost someday.
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