This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Alvarion's WiMax Road

Tel Aviv-based Alvarion (ALVR - Get Report) is betting that WiMax will become the next big thing in personal mobile communications after Wi-Fi.

That's why Tzvika Friedman, Alvarion's president and CEO, made a strategic decision to direct as many resources as possible to the development of the not fully standardized WiMax technology, even if it's biting into the broadband wireless company's financials.

Because WiMax devices are not even commercially available yet -- and the process telecom operators have to go through to get WiMax frequency licenses is in many cases long and difficult -- Friedman expects a few more challenging quarters before Alvarion's WiMax sales pick up.

But given that this WiMax industry leader is trading roughly around $7 a share, and rumors of a possible buyout are abundant, some believe Alvarion is the right long-term WiMax play.

"I am very bullish on the WiMax potential," says Laura Goldman, president of LSG Capital, which is based in Tel Aviv and owns the stock. "I can see this market only expanding, so why not buy the stock when it's cheap?"

With $200 million in annual sales and operating expenses totaling about half of that, Alvarion just about broke even in the second quarter this year, after hovering in the red in previous quarters.

WiMax, which stands for Worldwide Interoperability of Microwave Access, is a wireless broadband technology that provides an alternative to wired broadband such as cable and DSL.

WiMax provides fixed, nomadic, portable and eventual mobile wireless broadband connectivity without the need for direct line-of-sight to a base station.

(Mobile means being connected at a driving speed, as with cell phones.)

In the emerging WiMax realm, Alvarion still enjoys an 80% market share. But Friedman acknowledges this situation won't last forever.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SI $0.00 0.00%
ALVR $0.02 0.00%
INTC $31.30 -0.51%
NOK $7.58 -1.90%
QCOM $69.35 0.68%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs