Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Israeli wireless broadband specialist Alvarion (Nasdaq: ALVR ) earned a respected four-star ranking.
With that in mind, let's take a closer look at Alvarion's business and see what CAPS investors are saying about the stock right now.
Alvarion facts
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Headquarters (founded)
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Tel Aviv, Israel (1992)
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Market Cap
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$120.57 million
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Industry
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Communications equipment
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Trailing-12-Month Revenue
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$219.57 million
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Management
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CEO Eran Gorev (since 2009)
CFO Efrat Makov (since 2007)
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Return on Equity (average, past 3 years)
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(3.1%)
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Cash/Debt
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$91.4 million / $0
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Competitors
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Motorola (NYSE: MOT )
Cisco Systems (Nasdaq: CSCO )
Alcatel-Lucent (NYSE: ALU )
Ceragon Networks (Nasdaq: CRNT )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,007 members who have rated Alvarion believe the stock will outperform the S&P 500 going forward. These bulls include fireinyoureyes and umps15.
Just last week, fireinyoureyes tapped Alvarion as a possible way to double your money: "It's pretty cheap right now because of last quarter's earnings, but the death of WiMAX is greatly exaggerated. I expect revenue to grow in the next few quarters, and $4 will be well within reach."
While several companies are cashing in big on the breakneck growth of wireless connectivity, Alvarion's focus on WiMAX equipment seems to have left it out of the bonanza. Over the past six months alone, shares of Alvarion have been slashed in half on continued losses and top-line declines. Of course, with about $90 million in cash, zero debt, and a price-to-book (0.6) substantially lower than that of rivals Motorola (2), Cisco (2.8), Alacatel (2.3), and Ceragon (1.8), Alvarion might actually be safe enough to take a chance on.
CAPS umps15 explains:
Wimax has been slow to catch on, and investors are justly afraid that the technology will be dead, as in Betamax dead or HD DVD dead. But if you look at the history of wireless systems, the technology has always been fragmented with numerous standards across different companies and countries. In the end, then end user will not care whether their phone is using Wimax or LTE or whatever as long as it works. And technologically they are pretty much on equal footing.
Most investors have this stock undervalued fearing that Wimax will die. I think the possibility of that happening is lower than most people expect.
What do you think about Alvarion, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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