Wow... Share price is up $0.80 (12%) today on volume of 2 million. It seems that Cramer recommended HSTX (as well as Ceregon Networks) as a speculative buy.
Here is what he said...
===
The two best pure plays on microwave backhaul radios are Harris Stratex Networks and Ceragon Networks, though admittedly both are very speculative stocks. Harris’ market cap is just under $400 million, Ceragon’s is a mere $250 million, and neither trades for more than $10 a share. So the usual rules apply here: Buy in small increments, use limit orders and never pay up.
Harris Stratex controls 12% of the industry, getting 33% of sales from North America and the rest from overseas. This seemingly balanced exposure makes the stock a better pick as far as Cramer’s concerned, and the clean balance sheet with little debt and $2.15 in cash per share offers a bit more confidence as well. Harris announced weaker-than-expected guidance for the next quarter, but the stock is up 15% since, which “signals better times ahead,” Cramer said.
===
or, from another article...
===
For "Speculation Friday," Cramer continued on his thesis on "mobile Internet tsunami" by saying that the mobile Internet will not be stopped, not even by a sizable shortage of bandwidth. "Phone companies will just have to spend more money on wireless infrastructure," he said. That means more cell towers, more antennas and better connections from the towers to wireline networks.
There are only two pure-plays on latter, said Cramer, and they are Harris Stratex Networks (HSTX) and Ceragon Networks (CRNT), both tiny, speculative, companies. Both Harris and Ceragon are leaders in manufacturing the microwave radios that remote cell towers use to transmit data back to wireline networks.
Cramer said both companies are not only plays on wireless infrastructure in the U.S., but also in China and India, which are making huge investments into their networks as well. Of the two, Cramer leaned towards Harris, which has 12% marketshare here in the U.S., has $2.15 a share in cash on its balance sheet, and derives 33% of its business domestically.
===
So I'm not sure this upswing will last, but I'm not complaining. This provides more exposure to and awareness of our great company; that's always nice.
Rob |
