Ceragon Networks: Buy on the Drop

Are you looking to be a millionaire? Well, instead of blowing all of your money on blackjack (or betting the Seahawks…), look to WiMAX technology.

Having mentioned Alvarion (ALVR) last week, let’s now focus on Ceragon Networks (CRNT). Ceragon, the leading provider of wireless backhaul solutions for IP-centric networks, on Monday announced that the Russian Summa Telecom, has chosen Ceragon to power the Russian carrier’s WiMAX network. This is another in a long line of victories for the Israeli-based company.

Ceragon stock has tumbled by more than 20% over the last 3 weeks, and is in the low $14’s. Despite this drop, the stock looks quite attractive. The company has a strong pipeline of deals, and as one of the leading contenders to win Sprint Nextel Corp’s (S) mega WiMAX project, the stock could be off to the races.

WiMAX WiMAX WiMAX it’s all about WiMAX. Even Google (GOOG) is trying to get in on WiMAX.

For an interesting read, check out Susan Crawford’s take.

Ceragon stock has had a huge run so far this year, almost tripling since the beginning of the year, but with the recent weakness, this looks like a classic case of “buy the dips.” Just remember, “But there are millions who often get nowhere. And there’s just one secret I think you should share.”….Buy WiMAX.

Disclosure: The author has a position in ALVR, but has no positions in any of the other stocks mentioned as of September 17, 2007.