Shares in Wi-MAX developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) have gained a new lease on life in the past few days. The share has risen 15.7% since the beginning of the week, including 11.6% yesterday, on a trading volume seven times the daily average.
The company has offered no explanation for the jump in its share price.
It is possible that the explanation lies in a recommendation on Alvarion published a few days ago by website "Street Authority", which offers investment tips. The site recommended a number of bargain stocks, including Alvarion.
A few days later, "Seeking Alpha" also published a recommendation. Blogger David Sterman said that telecommunications operators had begun investing in network upgrades, and that Alvarion was a beneficiary, but that it was struggling to translate revenue into profits. Sterman wrote that the share had bottomed out, and that an announcement of a new contract could send it soaring.
Earlier this month, Alvarion announced a $75 million contract in Canada, and the share price rose 15% that day.
Another possible reason for the rise in the share price is assessments of progress in the Indian market, where a public tender for 4G frequencies was recently closed. Alvarion is in talks to become an equipment supplier to the winning mobile carriers.
Alvarion will publish its third quarter financials on November 3. The analysts' consensus estimate is a non-GAAP loss per share of $0.05 on $51.5 million revenue.
Alvarion's share price rose 0.4% at the opening on Nasdaq today to $2.52, giving a market cap of $156 million, after rising 3% on the TASE to NIS 9.16.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010