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Morgan Joseph is out with an interesting call on Powerwave (NASDAQ:PWAV) saying their checks through the fourth quarter lead them to believe that Powerwave's chief customers have resumed spending.

Firm notes they have credible evidence suggesting that AT&T (T) is again spending on improving the functionality of its wireless network, which they believe should directly benefit Powerwave.

Network spending at AT&T has been in a drought since the early part of 2007 when AT&T assumed full control of Cingular. Upon consolidating ownership of the wireless group, management entered a capital expenditure hiatus while making the effort to evaluate the network's condition. Checks indicate that the spending spigot is again open.

Although more difficult to quantify, they believe Nokia Siemens (NOK) has seen good business through the quarter as well. NOK has relied on Powerwave for core wireless network components.

At $4.50 Morgan Joseph thinks PWAV stock is left for the dead. Rates Buy.

Notablecalls: MJ's Kevin Dede has done some surprising checks! If AT&T is back spending, that's certainly good news not only for PWAV but for a host of other telco equipment names.

While I think Morgan Joseph isn't exactly the name that moves stocks, the call is good enough to move PWAV this time.

Source: Powerwave Customers Resuming Spending?