5-Star Stocks Poised to Pop: Alvarion

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Israeli wireless broadband company Alvarion (Nasdaq: ALVR) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Headquarters (Founded)

Tel Aviv, Israel (1992)

Market Cap

$224 million

Industry

Communications Equipment

TTM Revenue

$277.5 million

Management

CEO Tzvi Friedman (since 2005)
CFO Efrat Makov (since 2007)

TTM Return on Equity

3.8%

Competitors

Motorola (NYSE: MOT)
Nokia (NYSE: NOK)

CAPS members bullish on ALVR also bullish on

Cisco Systems (Nasdaq: CSCO)
Apple (Nasdaq: AAPL)

CAPS members bearish on ALVR also bearish on

Citigroup (NYSE: C)
Ford (NYSE: F)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 757 of the 781 members who have rated Alvarion -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include InvestRx and WiMAXPro.

Just last week, InvestRx noted that the stock "[g]ot hit on credit crunch and funding concerns for its WiMAX and other wireless broadband projects - should recover and provide 2-3 bagger returns from here as credit freeze begins to thaw and business returns to normal."

A more detailed pitch from WiMAXPro four days earlier shares that contrarian spirit. Here's an excerpt:

Alvarion is a conservatively run emerging technology start up that has developed positive cash flows and quarterly profits. The stock looks relatively undervalued based on historical metrics.

... This crisis is deeper and has less room to run away from than was seen in the collapse of the Internet/telecommunications bubble ... As was the case then, Alvarion traded all the way down to a discount to cash value. This time around the course of technology development that Alvarion has pursued, which has become WiMAX, is much more substantially developed and proven.

Long term, this will likely prove to be a great time to patiently accumulate shares.

What do you think about Alvarion, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Alvarion is a Motley Fool Rule Breakers pick, Nokia is an Inside Value selection, and Apple is a choice of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

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11/9/2009 1:19 PM
F $7.98 Up +0.23 +2.97%
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ALVR $3.72 Down -0.03 -0.80%
Alvarion Ltd. (USA… CAPS Rating: *****
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C $4.19 Up +0.13 +3.20%
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Community: Investing Wiki

Term Of The Hour

Credit crunch: The credit crunch is the informal term for the decrease in loan | lending activity that has made business more difficult for company | companies reliant upon leverage, or borrow | borrowed capital.

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