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Anaren Microwave (ANEN) is just beginning on its explosive growth path in the wireless communication space. It has recently pulled back after a series of good news (new contract, stock split 3:2 on May 12, secondary offering notification) and technically it is arriving at a good support level at about $78. $78 is significant from several TA standpoints: 1) support trendline dating back to early January; 2) highest point prior to the huge breakout spike that sent ANEN to over 100 in 3 days back in early March; 3) favorable long stochastics that shows a bottom crossover is likely to happen in a few days. Net, the pullback has likely come to a short term bottom. As ANEN is heading into the April earning quarter with announcement likely in the mid-April timeframe, investors should again expect ANEN to beat expectation in accordance with its recent quarterly trend. Since its wireless telecommunication business is ramping up (50% growth rate last quarter) to represent an ever bigger share of the overall revenue, ANEN is expected to beat earning estimate ($0.35) again by at least 2 cents. If they exceed by more than 2 cents, ANEN can instantly convert many doubters into believers and stage a strong breakout in its stock price as a new hot kid on the wireless telecommunication mo-mo block party. ANEN designs, develops, manufactures, and sells complex microwave signal distribution networks and components for the wireless communications, satellite communications and defense electronics markets. The Company's wireless communication products include highly integrated microwave signal distribution components and subsystems, as well as a product line of standard surface mount microwave signal splitting and combining components, under the trade name Xinger, that are used in terrestrial wireless communications base station amplifiers. ANEN also sells space and defense products include passive beamforming networks for communications satellite multi-beam antennas, digital frequency discriminators and other radar type discriminators, as well as a wide range of standard component products for defense electronics, such as mixers, couplers, power dividers and correlators. |
