5-Star Stocks Poised to Pop: Powerwave
By
Brian D. Pacampara
August 27, 2009
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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless infrastructure provider Powerwave Technologies (Nasdaq: PWAV) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Powerwave's business and see what CAPS investors are saying about the stock right now.
Powerwave facts
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Headquarters (founded)
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Santa Ana, Calif. (1985)
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Market Cap
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$162 million
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Industry
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Communication Equipment
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TTM Revenue
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$704 million
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Management
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CEO Ronald Buschur (since 2005)
CFO Kevin Michaels (since 1996)
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Compound Annual Revenue Growth (over last five years)
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17.5%
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Competitors
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Alcatel-Lucent (NYSE: ALU)
Nokia (NYSE: NOK)
CommScope (NYSE: CTV)
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CAPS members bullish on PWAV also bullish on:
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Microsoft (Nasdaq: MSFT)
Apple (Nasdaq: AAPL)
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CAPS members bearish on PWAV also bearish on:
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Select Comfort (Nasdaq: SCSS)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 201 of the 222 members who have rated Powerwave -- some 90.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars Lordrobot and Babachrono, both of whom are ranked in the top 15% of our community.
In late June, Lordrobot touched on the powerful waves working in Powerwave's favor: "[T]he more wireless grows the more power amps and antennae are needed. This is a company that while small has innovative technology and some China exposure."
In an earlier pitch, Babachrono helped Fools get an important inside edge:
Lots of insider buying in late 2008/early 2009. Income statement doesn't look all that impressive ... need to control expenses a little better. Balance sheet also not great, debt to cash is 6 to 1. They did tackle a good amount of payables and still increased cash last quarter, but that high debt number still looms overhead. Overall bigger upside to a small downside, if they can work to control costs they'll come up big. And with management's big buys, I think they're going to work toward it.
What do you think about Powerwave, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 140,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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