Rashid, here is the gizzard pick for 2001....A buy at 3.00 a share....AIRN....I have been acquiring this one, and again today picked up more shares....
There is an analyst who agrees with the gizzards...Here are his comments...
AIRN: Commando Broadband
We don't advise our funds to own a lot of small cap positions. There are a few reasons for this. The first and foremost of which is liquidity. Small companies often have thinly traded stocks. A minimum position in a lot of these companies is a few thousand shares. It's no fun to be put in a position where we want to sell a position - or buy more - and have to face bulldozing the spread to get the trade done.
When we do take a small cap position, it's usually because we find a story so compelling - a play so pure - that we just can't not own it. Airspan is a case in point.
You've probably never heard of Airspan - what they do sounds decidedly Gilder-bubble-sque. They provide "wireless DSL" services. But they aren't trying to convince yuppies in suburbia to turn their nose up at Verizon. They're out in the wild markets - the under-infrastructured ones: Latin America, China, Africa. In many of these markets the Airspan provider (a local carrier) is the only solution. There's often no cable modem or wireline alternative.
It's a simple, elegant business. No, they don't make money yet. But they're rapidly on the way. They book 41% gross margins, and book about $60 million in revenue (for a Price/Sales of about 2). They have more than enough cash in the bank to get to profitability. And at a valuation of $135 million, they're a logical takeover target for one of the big boys.
All good things so far. But the nailbiting comes in when the stock moves. And lately, it's moved a lot. On absolutely no news, the stock is up over 30% this month. And it's probably not even a big institutional buyer (the volume is average). So why the move? Well, this morning there is one little tidbit. Airspan opened an Indonesian office. Sounds pretty dull, but check out this line from the press release:
"Airspan's system will establish a wireless network in the city of Surabaya and its suburbs. First phase of installation will be completed in three weeks."
That's the hook. This is commando broadband. Forget fiber - the third world revolution will be wireless, and Airspan will be there.
Is this why the stock moved? It's a small stock, so who knows? They speak at a conference today in NY - in 10 minutes in fact (9AM Eastern). Maybe there's more to it. Maybe it's a fluke. In a stock this small, all one can really do is double-check your convictions and hang on.
Technically, the stock is right in the middle of a wide trading range. Resistance is way up at 5 and change. Support - real heavy duty support - is all the way down under 3. |
