ALVR is receiving quite the pullback this morning (-6.65%) on fairly heavy volume. This is not a surprise, in fact, my indicators have been telling me that ALVR was overbought for some time. All that means is that a catylist is needed to correct the overbought condition. My search only found an article published yesterday by Shlomi Cohen of Seeking Alpha.
http://seekingalpha.com/article/49087-wimax-over-hype-alvarion-not-likely-to-be-a-target-after-all
I find it somewhat contraditory for Cohen to post the following:
"Experts and industry giants still disagree profoundly as to WiMAX's future. The debate has raged on, despite the fact that Intel Corporation (INTC) is continuing to move forward at full speed, at least one giant service provider - Sprint Nextel Corp (S) - is investing billions of dollars in the roll-out of a WiMAX network, and last week Nokia Corp. (NOK) became the latest convert to the camp of stalwarts championing the case for WiMAX. "
The contract wins together with mega cap corporation involvement leads me to believe that there is a future for WiMax investments for the speculative investor. We are not talking about a mega position in ALVR, but rather some speculative money in this low cap, high technology company that has scored many contracts throughout the world. The involvement of the likes of INTC, S, and NOK just validates the speculative position further. What Mr. Cohen seems to be describing here, from a trading standpoint, is just enough negatives to give this new technology a "wall of worry" to be climbed moving forward. This is great for me because not all of the speculative run up has yet been exhausted, which for me is the game that I play. Additionally, Mr. Cohen dismisses the recent contracts as being "small contract wins." But he says no more about this point. You just are expected to believe him and then move on to his thesis as to why CSCO will not acquire ALVR. I must tell you, I have been trading ALVR for some time on the contract wins, rather than the CSCO takeover speculation. Since the last earning announcement, ALVR has scored partnerships or deals with Digicel, RACSA, Hitachi, AT&T, Russia, Israel and Mauritius. All of this for a company with less than 1 billion in capitalization, leads me to believe that these are no peanutes to the bottom line when considered cumulatively. We will need to wait until next reporting for the true value to be understood. So, to dismiss these deals within one sentence and then move on to why CSCO is not going to acquire ALVR is just plain sloppy. It should be noted that the run up from the first deal following the last earnings announcement has been 20%, but that is why we are letting it come back in a bit before reacquiring a position.
Therefore, we have an uptrend, positive prospects within the company, positive opinions regarding the technology from established mega capital corporations, and still some negative outlooks on the technology. I cannot wait to load up on my outstanding 1/2 position.
I have 1/2 position as I have sold down 1/2 of my position over the past month to capture gains during the overbought period. But I thank Mr. Cohen (if that is where this pullback comes from) for this opportunity to load back up on the pullback, but will wait a few days for the correction to settle down and for a base to form.
http://seekingalpha.com/article/49087-wimax-over-hype-alvarion-not-likely-to-be-a-target-after-all
I find it somewhat contraditory for Cohen to post the following:
"Experts and industry giants still disagree profoundly as to WiMAX's future. The debate has raged on, despite the fact that Intel Corporation (INTC) is continuing to move forward at full speed, at least one giant service provider - Sprint Nextel Corp (S) - is investing billions of dollars in the roll-out of a WiMAX network, and last week Nokia Corp. (NOK) became the latest convert to the camp of stalwarts championing the case for WiMAX. "
The contract wins together with mega cap corporation involvement leads me to believe that there is a future for WiMax investments for the speculative investor. We are not talking about a mega position in ALVR, but rather some speculative money in this low cap, high technology company that has scored many contracts throughout the world. The involvement of the likes of INTC, S, and NOK just validates the speculative position further. What Mr. Cohen seems to be describing here, from a trading standpoint, is just enough negatives to give this new technology a "wall of worry" to be climbed moving forward. This is great for me because not all of the speculative run up has yet been exhausted, which for me is the game that I play. Additionally, Mr. Cohen dismisses the recent contracts as being "small contract wins." But he says no more about this point. You just are expected to believe him and then move on to his thesis as to why CSCO will not acquire ALVR. I must tell you, I have been trading ALVR for some time on the contract wins, rather than the CSCO takeover speculation. Since the last earning announcement, ALVR has scored partnerships or deals with Digicel, RACSA, Hitachi, AT&T, Russia, Israel and Mauritius. All of this for a company with less than 1 billion in capitalization, leads me to believe that these are no peanutes to the bottom line when considered cumulatively. We will need to wait until next reporting for the true value to be understood. So, to dismiss these deals within one sentence and then move on to why CSCO is not going to acquire ALVR is just plain sloppy. It should be noted that the run up from the first deal following the last earnings announcement has been 20%, but that is why we are letting it come back in a bit before reacquiring a position.
Therefore, we have an uptrend, positive prospects within the company, positive opinions regarding the technology from established mega capital corporations, and still some negative outlooks on the technology. I cannot wait to load up on my outstanding 1/2 position.
I have 1/2 position as I have sold down 1/2 of my position over the past month to capture gains during the overbought period. But I thank Mr. Cohen (if that is where this pullback comes from) for this opportunity to load back up on the pullback, but will wait a few days for the correction to settle down and for a base to form.
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