NEWS ATML hitting briefing....
anyone post?
Mentioned a Fiber play this week. Here is one I am accumulating on any dips, check out the goods, two pt stop:
GGNT: Israel-based Giganet Ltd. designs, develops, manufactures and sells high-capacity broadband wireless network equipment that enables communications service providers to offer high-speed Internet, data, voice
and video transmission services at rates comparable to those found in fiber technologies. In addition, the company’s network equipment provides for symmetrical transmission speeds (equal upstream and downstream rates), a
quality not found in alternate broadband solutions such as DSL or cable.
By combining the speed of fiber with the cost benefits of wireless equipment, Giganet's products are in demand, as evidenced by the company’s clientele list, which includes Nortel Networks (NYSE: NT), Advanced Radio Telecom (NASDAQ: ARTT), WinStar Communications (NASDAQ: WCII) and Siemens.
In addition to Giganet’s strong client list, the company is backed by a noteworthy group of strategic investors including the Apax Group, which controls 1.9 million shares, HarbourVest International Private Equity
Partners, which owns 1.5 million shares, and Evergreen Group, which holds 1.3 million shares. In total, the three entities control approximately 24% of the 19.5 million shares outstanding.
Giganet recently came public August 4th in an $85 million IPO led by underwriters Morgan Stanley Dean Witter, Lehman Brothers and Robertson Stephens. On its first day of trading, Giganet priced 5.0 million shares at $17.00 -- well above its expected range of $12-14 – and hit an
intra-day high of $30 1/8, before closing at 24 ¾ for a one-day gain of over 40%. Since that time, the stock has performed quite well thanks to strong institutional support from its underwriters. Throughout early August, market makers representing the company’s underwriting team helped
keep the stock above its $17 issue price, despite turbulent market conditions. Consequently, the stock has rallied off its $17 base, posting a new all-time closing high $25 7/8 just yesterday.
Looking ahead, I feel that shares of Giganet may move considerably higher in the short-term due to increased exposure from analyst coverage, which should be initiated following the end of the company’s quiet period Tuesday, August 29th. If Giganet receives one or more “Strong Buy” ratings and the NASDAQ composite is stable or trends upwards, the GGNT stock may move considerably higher due to its low 5.0 million-share float. In addition, if the stock can move past its all-time intra-day high of $30 1/8,
expect even more upside. |
