Yeah, I'm a little tired of this extended "buying opportunity" myself. But I do believe VARL is a good company and doesn't warrant being slammed because they are a supplier to an industry that is growing at 40-50% world wide. VARL's business is growing nicely. I guess the stock got ahead of itself, like many wireless-related stocks did, and the July selloff took it's toll.
While the PCS operators will have a tough time making money, in my opinion, the equipment providers will get their money up front and thats the way to play the PCS market. I think the larger number of operators will indeed raise the market penetration in the U.S. as rate competition leads to lower airtime pricing and pulls in the marginal subscribers. Whether or not the service providers make money is not so important in the next 2-3 years to VARL, because they (the operators) will stop at nothing to get market share. This means phones will be built and will find their way into the market.
There are also wireless local loop, MMDS, and LMDS opportunities worldwide that I hope VARL can take part in through design wins with the equipment suppliers.
VARL may take a while to pay off for us, I'm not impressed with the stock performance since the July sell off. I've got enough shares now so I won't be averageing down anymore. Good luck!! |
