June 26, 2009

Watching Alvarion

The Fool has a write-up on Alvarion, one of their Rule Breaker recommendations. The company was just awarded two new contracts that could account for a large revenue increase.

But, the most interesting aspect of the company is its perceived value, or rather how much it is undervalued. From the article:

"But even if there are no more deals to be had, look at the math. Alvarion is presently worth just more than $270 million in market cap, yet it booked $282 million in revenue over the trailing 12 months. Think about what that means: Each dollar of Alvarion revenue trades for less than $1. And it's just landed two good-sized contracts, so that revenue should be growing. We also know that Alvarion has more than $135 million in cash and no debt on its books."

If you agree with this analysis, then this is a great case for making an investment in this company.

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