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Rising oil prices and global unrest are keeping the market on a roller coaster of late as jittery investors weigh risk, but savvy investors should remain diligent and look for undervalued stocks that are experiencing temporary market weakness but remain poised for sustained growth in 2011. Underlying market strengths remain intact for companies like optical component [...]

Hudson Securities is out with a research report on DragonWave, Inc. (NASDAQ: DRWI), after the company reported earnings yesterday after the bell. It has a $7 price target, and rates shares at Neutral. In the research report, Hudson notes, "The company is well positioned with Clearwire (CLWR), a leading provider of 4G networks. However, we believe its long term growth is contingent on expanding its customer base. We feel that the shares of DRWI are fairly valued at 20X our FY12 EPS estimate...

DragonWave Inc. (NASDAQ: DRWI) reports Q3 earnings of $0.03. versus consensus of $0.02. DragonWave Inc. reports revenues of $27.2 million versus consensus of $31.05 million. The company expects revenue for the third quarter of fiscal year 2011 to be approximately $30 million. "I am satisfied with our progress in the second quarter in meeting key objectives to strengthen our global market presence, expand our customer and partner base, and to continue to deliver innovative solutions," said...

Hudson Securities rates shares of DragonWave Inc. (NASDAQ: DRWI) at Neutral, with a $7 price target. In the research report, Hudson Securities writes, "We expect the quarter to be in line with the potential for upside resulting from incremental orders from CLWR. We feel that these orders were for additional equipment or bandwidth for CLWR's near-term deployments. For the quarter, we are looking for revenue of $25.0 million and EPS of a loss of ($0.01). Consensus estimates are for revenue...

Hudson Securities is initiating coverage on DragonWave Inc. (NASDAQ: DRWI) with a Neutral rating and a $7 target. In the research note, Hudson writes, "DRWI has hit a self-described “air pocket” in its revenue growth as CLWR (80% of revenue) digests its current shipments of DRWI products. As a result, revenue for the upcoming quarter is estimated to drop 49% sequentially and 23% Y/Y. EPS will likely trend into loss territory as we are projecting a loss of ($0.01) for the coming...

Ouch. I was reviewing some earnings reports from the past week, and DragonWave (DRWI) competitor Ceragon Networks (CRNT) reported a nice quarter That reminded me to look at DragonWave as I tend to lose track of stocks not in the portfolio nor in my watch list to buy on a near term pullback, and we see a case example of "sell and ask questions later once a chart breaks". I stopped out of the majority of the position in early February when the stock broke support. The worse thing that...

It appears DragonWave (DRWI) is fighting back against whatever forces were causing the freefall in the stock.  The company announced a normal course issuer bid of "up to 10%" of the float this morning.  It is always hard to know if companies will follow through on such promises because we see announcements like this of potential stock buybacks (i.e. X amount of authorized shares we "could" buy) but in reality they are just announcements, and the companies many times only buy a fraction of...

I said entering the week, these are 2 positions I'd be monitoring, along with EnerNOC (ENOC) as they are the 3 weak links we had in the long side of the portfolio.  I've culled Rackspace Hosting (RAX) twice this week, and said yesterday if I did not already have other shorts maxxed out, I'd be shorting the stock at that point.  Unfortunately as Greenhill & Co (GHL) stopped me out first thing this AM, I went to go short Rackspace as its replacement and it was already down 3% right at the...

I cut some DragonWave (DRWI) yesterday as it broke below the 50 day moving average, and the stock continues to look sickly.  I am going to dump most of the rest of the position here in the $11.30s and take it down to a 0.1% stake to keep it on the radar.   This batch will be at a 9% loss, but entering today I only had about a 0.5% allocation.  The stock is now down 5 sessions in a row, and 8 of the past 9 - while the market has been up for almost all those days.   This action might...

I am adding a smallish exposure back to our existing DragonWave (DRWI) position as it's the 2nd stock we own on the long side of the portfolio to regain all key moving averages.  That said, it's a go it slow approach and this purchase is only about 0.7% of the fund.  It will be stopped out (again) on a break below recent lows. In the bigger picture time is running out for the bulls to get this market going.  We were extremely oversold, coming into the week - especially a week ago...

Make that 2 material long positions... DragonWave (DRWI) joined the "breakdown" party and my stop loss in the mid $10.90s hit; reducing our exposure by 60%.  All the same comments as I made for Atheros in the previous entry apply here.  EDIT 10:35 :  Make that 1 material long position as EnerNOC (ENOC) stop loss also hit this morning.  2/3rds taken away just under $31.  Almost identical chart to Atheros... Long DragonWave, EnerNOC in fund; no personal position

As I peruse charts, I can't help but notice the fantastic move in Ceragon Networks (CRNT) which only came back onto my radar lately due to our position in DragonWave.   Before that it had been off my radar for a good 5-6 years. As I said in the original analysis of DRWI, I still like DragonWave far more on valuation metrics... it's priced at $13.75 for 65 cents worth of earnings (year ending Feb 2010), whereas Ceragon is at $12.60 for 17 cents of earnings (year ending December 2009). ...

Please note this could be a very short term change in DragonWave (DRWI) position size.  This stock is in exact same position as the S&P 500... it is retracing to a recent high (intrday high earlier this week was $13.93).  Much as I am doing with my index longs, I am selling a portion as we approach the recent high, watching to see if this is a "double top" or "double top breakout".  [click to enlarge] We bought a huge chunk of this position Tuesday in the $12.40s as the "gap...

Could of not asked for a better outcome in DragonWave (DRWI).  We mentioned late yesterday we were looking for the gap at $12.42 to fill; I placed a limit order for 2.25% exposure at $12.44.  The stock fell to $12.37 this AM and is now bouncing back to $12.60. Our exposure was increased from 1.75% to about 4% on that dip, I am wondering if I should of bought more... Our cost basis has now increased from just a tad over $11 to $12.10 but since we began the position the stock has...

After a stellar earnings report Thursday night, DragonWave (DRWI) flew higher Friday and I thought I was going to be stuck with my position size unless I "chased".  Chasing has been the way to go for much of this rally since March 2009; it is just not my favorite thing to do.  Thankfully, today we have a pullback into the upper $12s on the stock and the rare situation happens when a stock that smashes estimates doesn't run away from you appears to be in our hands.  Potentially DragonWave...

I was a little fortunate on DragonWave (DRWI) - although we discussed its prospects yesterday - I had forgotten earnings were coming so early in the month.  The results last night were a smashing success which should not of been a surprise considering in October the company pre-announced some huge order flow which we noted in item #6 in our original piece on the company.  Conservative analysts seemed blind sided but those are the opportunities one can every so often find in the market. ...

I was excited to see a story by a news agency on little known DragonWave (DRWI) - our smallest company by market capitalization, so I thought it worthy to bring over.  This is yet another name we recently purchased a started position in, HOPING for the stock to FALL so we could buy more - but at least wanted some skin in the game.  Since very few stocks are allowed to fall anymore we are only left with our 1%ish exposure.  Looking at the chart - like almost everything we hold which has...

I beginning a new stake - about 0.9% exposure - in a DragonWave (DRWI).  On fundamentals I would like to be buying more, but the stock is very extended versus its moving averages so I am going to get our feet weet just over $11.00 (0.9% exposure) and hope for a pullback to $10 - $10.50 to make the position larger. This stock is also running into a "double top" with mid October highs so I want to see how it handles that.  First, the chart... This is an interesting $300M market cap,...