Tag - Alvr

Stocks closed down today in all of the major U.S. indices. The Dow closed down 25.92 points to end at 9,070.80; the Nasdaq ended at 1,967.76, down 7.75 points; and the S&P 500 moved downward 4.48 points to close at 975.44.

The Russell 2000 ended the day at 549.54, down 2.56 points.

Small-cap gainers were lead by American Axle & Manufacturing (NYSE:AXL) up 50% to close at $2.02. Other small-cap share price gainers Elron Electronic Industries (Nasdaq:ELRN) up 45%; McClatchy Company (NYSE:MNI) up 44%; and Conseco (NYSE:CNO) up 36%.

Small-cap decliners were lead by Frontier Financial Corp. (Nasdaq:FTBK) down 21% on announcing Q2 losses of $1.06 per share versus gains of $0.04 a year ago. Joining FTBK in leading decliners today were THQ (Nasdaq:THQI) down 19%; Alvarion (Nasdaq:ALVR) down 17%; and Ariad Pharmaceuticals (Nasdaq:ARIA) down 16%.

*****With the exception of the Nasdaq, the major indices finished yesterday with slight losses. And it looks like an even money bet whether they'll finish in the red today. We've seen an unlikely move over the last two weeks. The S&P 500 has made gains in 9 of the last 11 sessions and moved 11.3% higher. Volume hasn't been especially strong during this move, but it is summer. Volume is always a bit lighter in the summer.

It seems more and more strategist-types are looking for a pullback or correction for stocks. Yesterday, CNBC's Jim Cramer said he was expecting some red. Of course, Cramer makes so many calls it's hard to keep them all straight.

For the record, Cramer says he likes healthcare stocks, technology and financials, believe it or not. He says financials are so universally hated that they will be stronger than average in the event of a pullback. That's the "no one left to sell" theory.

I'm not so sure. The banks have been given time to earn their way back to health. And it could work. But a lot depends on the housing market. Many banks still carry toxic assets. And their reluctance to sell into Geithner's PPIP suggests they remain hopeful these assets will regain value. If they don't, it could be problematic. And then there's the commercial real estate situation we've been discussing.

******Did you know I'm about to publish my first book? The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks will hit the shelves on September 14.

In The Small Cap Investor, I share the proven techniques for uncovering the small cap companies poise for a huge run higher. My biggest success was apparel company True Religion (Nasdaq:TRLG). I recommended that stock to my readers at $1.13 a share. We sold it in 2008 for 2,216% gains. My techniques have also led my SmallCapInvestor PRO advisory service to a 93% win rate this year.

Now, I need your help. As part of the marketing plan for my book, we are holding a T-shirt contest. I want you to be the one who comes with the slogan for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt.

Obviously, "Secrets to Winning Big with Small Cap Stocks" is taken. But slogan's like "I made a 142% on Gulfport Energy and all I got was this lousy T-shirt" or "Ian Wyatt: The Best Small Investor" are open.

We'll be holding the voting on the Small Cap Investor page on Facebook starting today and running through August 9th. You can leave your submissions there, or send them to tshirt@smallcapinvestor.com.

The winner will get their very own shirt plus a full-year subscription to SmallCapInvestor PRO. This should be a lot of fun. I hope you'll participate.

******China is in the news again. Overnight, the Shanghai Composite fell 5%, the biggest drop in eight months. Investors are nervous on reports that the Chinese government may be discussing clamping down on lending due to the potential for imbalances to occur.

Specifically, Bloomberg is reporting that the Chinese government is concerned that asset bubbles may be forming in the stock market and that inflation may be building.

Chinese stocks are reportedly trading at 35 times reported earnings. And that is expensive. But interestingly, the Chinese stocks in the SmallCapInvestor PRO portfolio are trading with Price-to-Earnings ratios between 8 and 11. That's much cheaper than most Chinese stocks, apparently, and one of the reasons we recommended them.

Of course, valuations won't keep our stocks from declining if the Chinese stock market takes a hit. But Chinese stocks are recovering today after last night's sell-off, so that's a good sign.

If you're interested in finding out more about the Chinese stocks in the SmallCapInvestor PRO portfolio click here to get a copy of the report.

*****Finally, Top Stock Insights reader took 35% gains yesterday on Chinese medical device maker called Mindray (NYSE:MR). I love the science fiction name, but couldn't resist taking the gains.

Best Regards,

Ian Wyatt
Editor
SCI Daily

Early morning weakness in the markets was made up during the afternoon trading hours. The Dow closed just slightly down at 8,497 for a loss of 0.09%. The Nasdaq was up 0.66% for a close of 1,808 and the S&P 500 lost 0.14% to close today at 910.

Small-cap stock investors were rewarded with a 0.65% gain on the Russell 2000 index, a composition of the 2,000 largest small-cap stocks, that closed at 507 today.

Pharma continued it's leadership position in small-caps with Molecular Insight Pharmaceuticals (Nasdaq:MIPI) up 41.3% today as money continues to move into healthcare stocks. Blue Chip pharma stocks followed their upward trajectory, though not nearly as much as small-caps put in, with Abbot Laboratories (NYSE:ABT) up 2.7%, Merck (NYSE:MRK) moved up 1.5%, and Johnson and Johnson (NYSE:JNJ) posted a 1.2% gain.

The other small-cap leader in pharma was Savient (Nasdaq:SVNT) up 35.5% after receiving the recommendation from a panel of arthritis experts who suggested the Food and Drug Administration approved Savient's new gout drug. By a vote of 14 to 1 the panel recommended that the firm's drug, KRYSTEXXA, be granted marketing approval by the FDA. The action date for the FDA's decision is currently set for August 1, 2009.

Other small-cap gainers for today include Alvarion (Nasdaq:ALVR) up 18.3% on news of its $100 million contract with Open Range Communications; Cayman Islands based United America Indemnity (Nasdaq:INDM), a provider of property and casualty insurance products, up 16.4%; and Connecticut based MTM Technologies (Nasdaq:MTM), up 42.8%.

Decliners were lead by Star Scientific (Nasdaq:STSI) which shed 73% off it's opening price to close today at $1.13. Star lost its patent suit against No. 2 cigarette maker RJ Reynolds Tobacco, a unit of Reynolds American (NYSE:RAI). It alleged that RJ Reynolds had infringed in its patents related to the way of growing and treating tobacco plants to prevent nitrosamines from forming. It's believed that in reducing nitrosamines that the cancer-causing agents in tobacco can be significantly reduced. The jury ruled not only that the patents were invalid, but that they should not have been issues. Star said it would seek a new trial or appeal to the U.S. Court of Appeals.

Other small-cap decliners were lead by financials including National Penn Bancshares (Nasdaq:NPBC) down 23.2%; First Financial Service Corp. (Nasdaq:FFKY) down 18.5%; and Provident Community Bancshares (Nasdaq:PCBS) down 16.4%. Larger capitalization bank shares were not immune to the sell-off in financials with Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) all declining today.

*****On Monday, an influential bank analyst raised his price target for Bank of America (NYSE:BAC) to $19. That implies a 40% jump for BAC. Curiously, this particular analyst didn't cite any improvements to the business or strength in the bank's balance sheet. Rather, he based his analysis on improving investor sentiment.

I don't know about you, but I'm not running out and buying a stock - especially a bank stock - just because investors feel better. No, I'm going to need to see actual evidence that conditions for banks are improving before I wade into those murky waters.

So far, the improvements we've seen in bank fundamentals have been based on accounting changes and government stimulus for the housing market. These measures don't fix the problem; they simply make the symptoms look better.

*****To underscore this point, S&P just cut its ratings on 22 banks because of the potential for further weakening in the sector. The S&P analyst had this to say:

"We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions…Financial institutions are now shedding balance sheet risk and altering funding profiles and strategies for the marketplace's new reality. Such a transition period justifies lower ratings as industry players implement changes."

Bank of America was not among the banks whose outlook was cut by S&P. And I don't care. So long as the sector is weak and the economy is struggling I'm not going anywhere near banks stocks, improved investor sentiment or not.

*****I know Cold War politics are long over, and that Russia and the U.S. are no longer vying for supremacy, but I still can't help thinking "In your face, Russia" when I read that dollar denominated bonds sold by Russia, China and Brazil performed far better than bonds denominated in those countries own currency.

Russian and Brazilian bonds lost money. China's yuan denominated bonds posted small gains. In every case, dollar denominated bonds made money.

It should be obvious that the BRIC countries (Brazil, Russia, India and China) demand that the world's reserve currency should be manipulated to weaken the influence of the dollar is pure politickin'. Or in the words of a currency strategist quoted by Bloomberg, "It's not up to politicians to determine which currency will be the world reserve currency…In the end the market decides it."

In this case, it should be apparent that the market has spoken.

*****So I won't buy their debt, but I will buy Chinese stocks. Yesterday,   SmallCapInvestor PRO added another Chinese stock to the portfolio. China's one of the few countries in the world that's posting any growth. And investors should absolutely own some Chinese stocks right now. If you want to find out what we're holding in SmallCapInvestor PRO just click HERE.

Stocks started positive in morning trading, but quickly gave ground before the noon lunch hour Eastern time and never recovered. The Dow Jones Industrials were down 1.25% to close at 8,504; the Nasdaq closed down 1.11% at 1,796; and the S&P 500 shed 1.27% to end the day at 912.

Small-cap stocks, as measured by the Russell 2000 Index, fared worse, giving up 1.22% to close at 505.

Today's small-cap gainers were lead by STEC Inc (Nasdaq:STEC), a California-based memory chip maker, up 29%. STEC increased its Q2 financial outlook stating that improved sales of its ZeusIOPS solid-state drive product line had caused the company to revision its guidance. STEC now expects adjusted earnings of between 32 and 36 cents per share.

Other small-caps showing leadership include La-Z-Boy, (NYSE:LZB) up 22% on news that it returned to profitability in Q4 and beating analysts' EPS estimates; Merge Healthcare (Nasdaq:MRGE) up 17%; Alvarion (Nasdaq:ALVR) up 16%; and Satyam Computer Services (NYSE:SAY) up 16%.

Small-cap decliners were lead by Matrixx Initiatives (Nasdaq:MTXX) down 70% on receiving a warning from the U.S. Food and Drug Administration (FDA) to discontinue selling it's Zicam product and for consumer to stop using it immediately. The FDA has indicated that there have been 130 reported cases of people losing the sense of smell after using the products. Zicam is a leading product for preventing and minimizing the effects of the common cold when the patient uses the product at the first symptoms of a cold. The FDA action affects only the nasal swabs and gels and does not apply to the tablets or lozenges.

Although Matrixx is on record stating that the product does not cause a loss of smell the company has indicated that it will consider withdrawing the products in questions, which in total account for roughly 40 percent of its sales.

Other small-cap decliners include Myriad Pharmaceuticals (Nasdaq:MYRXV) down 32%; Magyar Bancorp (Nasdaq:MGYR) down 34%; A-Power Energy Generation Systems (Nasdaq:APWR) down 24% on news that first quarter earnings fell by nearly half; and two of yesterday's leaders: Jazz Pharmaceuticals (Nasdaq:JAZZ) down 17% and QEP (Nasdaq:QEPC) down 15%. 

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, called yesterday's 2.5% drop on the S&P 500 to a tee. If you watched the video chart analysis from Jason that I included in Friday's Daily Profit, then you were ready for Monday's sell-off. I hope you were able to profit from it.

And bonus points to Jason for calling the closing level of the S&P within 2 points. I think Jason's video chart analysis will be a welcome addition to Daily Profit. Look for the next one in Friday's edition.

******If it weren't for gasoline, prices at the wholesale level would have fallen 0.1% in May. Still, prices are off 5% from this time last year. That's the biggest drop in 50 years. Is this good news?

Not for corporate profits, and so probably not for valuations. And not for the Fed, who's terrified of deflation. But for the crowd expecting runaway inflation because of a weaker dollar and rising interest rates, it might be.

It should be obvious that weak demand and high unemployment will keep a lid on prices in the short-term. Remember too that it took 18 months before rising oil prices really started to find their way into the prices of consumer goods, too. Right now, inflation expectations are just that - expectations.

Still, those expectations have helped oil and commodity prices run higher…

*****And inflation expectations aren't the only thing driving commodity prices higher. Demand from emerging markets, especially China and India, remains fairly strong. After all, these countries have money to spend to help re-inflate their economies.

Jason Cimpl will be discussing the outlook for inflation and commodity prices in a special video conference next Wednesday, June 24 at 6:00 P.M. It's totally free, and Jason will share his top gold stocks with attendees (yes, we see significant upside for certain gold stocks). This video conference is free of charge, you can sign up HERE.

*****The Ural mountain city of Yekaterinburg, Russia takes center stage in global economic news today. The BRIC countries--Brazil, Russia, India and China--are holding their first ever summit starting today. The U.S. is not invited.

That's because these emerging economic giants want more control over the global economy. And with a combined 42% of global currency reserves, they are in position to throw their weight around a little.

It's no secret that the U.S. depends on these countries to buy our Treasuries and fund our bailout and stimulus plans, not to mention our trade deficit. So the news that these countries will be discussing plans to diversify away from American bonds and buy IMF bonds is important for the U.S. dollar. Just last week Brazil pledged $10 billion purchase IMF bonds. That's a far cry from the day's when Brazil was synonymous with hyper-inflation and a poster child for coming to the developed world hat-in-hand.

But there's more to the story, especially with China. Some estimate that China has as much as $1.3 trillion of foreign reserves, most of it in dollars. And right now, China is putting that money to work stockpiling commodities and supporting its economy. So buying Chinese stocks, especially Chinese commodity stocks, is a great idea right now.

At SmallCapInvestor PRO, we just loaded up on Chinese stocks. I believe this is the one reliable growth story in the world today. I've got a Special Report ready with my top investment recommendations; you can get a copy HERE. 

Small-cap stocks pushed lower on the open, weighed down by slumping financial shares and a pause in the commodities run that helped power Monday’s rally. Some of today’s small-cap gainers are DryShips (Nasdaq:DRYS), TBS International (Nasdaq:TBSI) and Eagle Bulk Shipping (Nasdaq:EGLE).

Other Market Watch highlights today included:

• It should be noted that the U.S. dollar was up about 0.9% against the euro, which tends to weigh on commodities.  
• Crude oil prices slipped about $0.40 a barrel on the stock market open, which could keep energy stocks at bay today.  
• Today’s pullback in the stock market comes as a logical “breather” following an impressive two-day run that lifted equities to four-week highs.  
• Earlier this morning, the Johnson Redbook Retail Sales Index was down 0.8% for the week on a year-over-year basis.

Small Cap Gainers:

• DryShips up another 12% in pre-market this morning, extending the solid rally from Monday. See (Nasdaq:DRYS).
• TBS International up 7% in pre-market on light volume, extending Monday's rally. See (Nasdaq:TBSI).  
• Eagle Bulk Shipping up 6% in pre-market as many drybulk shipping companies made huge gains on Monday. See (Nasdaq:EGLE).  
• Wireless broadband provider Alvarion to cut job, executive pay. Shares rise 3% in pre-market. See (Nasdaq:ALVR).  

Small Cap Losers:

• Learning Tree International Inc. gapped downward and lost 21% as the education vendor also took an earnings-related lump. See (Nasdaq:LTRE).  
• Analogic Corp. gapped lower and shed 19% maker of health and security imaging equipment announced earnings. See (Nasdaq:ALOG).
• Con-Way Inc. slumped 16% as the freight transport company revised guidance lower. See (NYSE:CNW).  
• Cherokee Inc. slipped 10% as the brand management company corrected lower from big gains the previous two sessions. See (Nasdaq:CHKE).  

GigaMedia Ltd. (Nasdaq:GIGM), China Sunergy Co Ltd. (Nasdaq:CSUN) and Dendreon Corp. (Nasdaq:DNDN) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Datascope Corp. (Nasdaq:DSCP), Alvarion Ltd. (Nasdaq:ALVR), TASER International Inc. (Nasdaq:TASR), Netlogic Microsystems Inc. (Nasdaq:NETL), Clean Energy Fuels Corp. (Nasdaq:CLNE) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF).

Here are the most actively traded companies among small caps:

Gehl Co. (Nasdaq:GEHL), Biodel Inc. (Nasdaq:BIOD) and Solarfun Power Holdings Co Ltd (Nasdaq:SOLF) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: China Sunergy Co Ltd (Nasdaq:CSUN), AuthenTec Inc. (Nasdaq:AUTH), UCBH Holdings Inc. (Nasdaq:UCBH), Spectranetics Corp. (Nasdaq:SPNC), Alvarion Ltd (Nasdaq:ALVR) and Investors Real Estate Trust Units (Nasdaq:IRET).

Here are the most actively traded companies among small caps:

Saia Inc (Nasdaq:SAIA), Brigham Exploration Co (Nasdaq:BEXP) and Hanmi Financial (Nasdaq:HAFC) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Alvarion Ltd (Nasdaq:ALVR), Kohlberg Capital Corp (Nasdaq:KCAP), ATA Inc (Nasdaq:ATAI), BioSante Pharmaceuticals Inc (Nasdaq:BPAX), Aladdin Knowledge Systems Ltd (Nasdaq:ALDN) and Dendreon Corp (Nasdaq:DNDN).

Here are the most actively traded companies among small caps:

Insulet Corp (Nasdaq:PODD), Alvarion Ltd (Nasdaq:ALVR) and Superior Essex Inc (Nasdaq:SPSX) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Solarfun Power Holdings Co Ltd (Nasdaq:SOLF), Tercica Inc (Nasdaq:TRCA), Canadian Solar Inc (Nasdaq:CSIQ), Crocs Inc (Nasdaq:CROX), Royale Energy Inc (Nasdaq:ROYL) and Rex Energy Corp (Nasdaq:REXX).

Here are the most actively traded companies among small caps:

WiMAX pure player Alvarion Ltd. (Nasdaq:ALVR) said this morning that it secured a joint WiMAX agreement with networking services provider Nortel Networks (NYSE:NT) to create an end-to-end WiMAX solution to meet the needs of the evolving wireless broadband market.

Shares popped 8%, or $0.61, to $8.12 in pre-market trading. For detailed price information and recent news stories about Alvarion, click ALVR.

Watch this section for a periodic look at topics of interest from the staff of SmallCapInvestor.com.

It’s been a rough ride for technology this year. However, the small-cap tech space looks to be bottoming out, which means opportunities are emerging for investors.

The tech-heavy Nasdaq index is down roughly 5% year-to-date, though narrowing from a wider negative margin of as much as almost 17% in March.

“[Small-cap tech] has been an area that has been very much a stock picker's market rather than a broad coverage,” said Joe McNay, chief investment officer and managing principal of Essex Investment Management Company, in an interview last week.  “Overall, I think it's been an improving area that many stocks are making bottoms in — as a whole it continuously looks a little better. We’re at a point where there are lots of opportunities.”

Much like the economy, technology stocks exhibit a degree of cyclicality. The first expenditures that businesses typically cut back on are technology purchases. On the consumer side, disposable income is funneled into necessities first and discretionary items second.

The consumer could remain under pressure, as rocketing food and oil prices coupled with credit that is hard to come by and rising unemployment levels have crimped purse strings this year. However, as the Federal Reserve’s rate cuts begin to kick in and create greater liquidity, corporations should get back on their feet as they . . .

EMCORE Corp (Nasdaq:EMKR), Website Pros Inc (Nasdaq:WSPI) and Alvarion Ltd. (Nasdaq:ALVR) are among the most actively traded companies in Monday's pre-market trading among those with market capitalizations under $750 million.

STEC Inc (Nasdaq:STEC), NextWAVE Wireless Ord Shs (Nasdaq:WAVE), AgFeed Industries Inc (Nasdaq:FEED) and TASER International Inc (Nasdaq:TASR) are also among the most actively traded small-cap companies in pre-market trading.

Here are the most actively traded small-cap companies in Monday's pre-market trading:

WiMAX and broadband provider Alvarion Ltd. (Nasdaq: ALVR) posted first-quarter results early Monday that trumped the consensus on Wall Street. The Israeli company also issued second-quarter guidance inline to above analysts’ estimates, noting that they will they will continue to pursue cost controls in light of a beleaguered dollar and target higher level business, which will lift operating expenses.

Shares gained 7%, or $0.47, to $7.25 in pre-market trading. For detailed price information and recent news stories about Alvarion, click ALVR. 

The Russell 2000 (NYSE:IWM) futures are slightly higher as investors react to news of a bullish private jobs report.

The private sector added 8,000 jobs in March, according to a monthly report by payroll company Automatic Data Processing, Inc. (NYSE:ADP) before the start of trading. That’s a modest gain but it beats economists’ projections of a decline.

Small-cap stocks opened higher and stayed strong, ending Tuesday’s session near the highs for the day, while pushing above important short-term resistance near 705. The Russell 2000 closed at 710.64, up 22.67, or 3.30%, notching the third-largest one-day percentage gain of the year. Resistance comes in today at 716, but the critical spot is up around 724. Look for support at the aforementioned 705 area, then down at 696 and 688.

Today’s big event comes in the form of a scheduled appearance by Federal Reserve Chairman Ben Bernanke before the congressional Joint Economic Committee, which could stir volatility into the trading session. The Factory Orders release at 10:00 a.m. ET will likely be upstaged by the Bernanke headlines.

The Russell 2000 (NYSE:IWM) futures are slightly higher but have been narrowing as investors make sense of a new plan to regulate financial markets.

The Bush administration is proposing sweeping changes to the system of financial regulation that will give additional powers to the U.S. Federal Reserve. The plan will be formally outlined by Treasury Secretary Henry Paulson at 10 a.m. ET.

Bears took control of the Russell 2000 late Friday, with small caps losing 9.20, or 1.33%, to 683.18. The market struggled all week to attract buyers along the 705 zone, and that remains the critical upside point to watch early this week. Even before there, look for resistance on our old swingline at 700 Monday. Meanwhile, support comes into play at 680, 674 and 667.

The Chicago Purchasing Managers Survey comes out this morning at 10:00 a.m. ET, and could set the early tone for stocks. Potential volatility from economic releases will be a recurring theme this week, highlighted by Friday’s employment data.

Converted Organics Inc. (Nasdaq:COIN), Retalix Ltd. (Nasdaq:RTLX) and Alvarion Ltd. (Nasdaq:ALVR) are among the most actively traded companies in Thursday's pre-market trading among those with market capitalizations under $750 million.

Here are the most actively traded small-cap companies in Thursday's pre-market trading:

Shares of Alvarion Ltd. (Nasdaq: ALVR) fell as analysts lowered their 2008 earnings estimates for the provider of WiMAX and wireless broadband network solutions a day after the company announced strong fourth-quarter and year-end results.

Tel Aviv, Israel-based Alvarion announced on Tuesday that revenues for the fourth-quarter ended Dec. 31, 2007, jumped 32% to $66.3 million from $50.3 million a year earlier. Net income moved up to $3.1 million, or $0.05 per share, compared with $2.4 million, or $0.04 per share during the last three months of 2006.

Profit for the entire 2007 doubled to $0.14 per share from $0.07 per share in 2006.

“Alvarion’s 4Q represents a strong finish to the year, but a weak dollar led to high operating expenses and disappointing EPS guidance for 1Q,” wrote analyst Irit Elrad-Jakoby from financial service firm Susquehanna Financial Group in a research note released today.

The company forecasted first-quarter 2008 revenues between $63 million and $67 million, for a profit of between $0.00 per share and $0.03 per share.

“[Alvarion] is exposed to fluctuations in the U.S. dollar exchange rate,” the company said in a statement. “In addition, income is adversely affected by the decrease in interest rates.”

“Lower profitability through 2008 is a disappointing factor since operating leverage is one of the investment positives for 2008,” wrote Jakoby, who is lowering her earnings estimate for the first quarter to $0.02 per share from $0.04 per share. The analyst also lowered her earnings estimate for the entire 2008 year to $0.21 per share from $0.30.

This week, we look at a trio of high-tech ideas that come from three of the savviest advisors in the newsletter field. Mark Mowrey looks at a high-tech stock that offers both high growth and value, Bill Martin offers a "swing for the fences" idea that is also backed by a "pristine balance sheet" and Vivian Lewis finds a tech play with the added potential of takeover appeal.

Technology stock expert Mowrey finds the server virtualization market of recent IPO VMware, Inc. (NYSE: VMW) attractive, but as a strict value and growth manager, he is not interested in the highly valued shares.

"How about a company that sells VMware's software?" he asks in his industry-leading The Prudent Speculator TechValue Report. Here, he looks at Wayside Technology Group (Nasdaq: WSTG), which meets his value criteria.

"As we watched shares in VMware soar after they made their IPO, we wondered how we might take advantage of the tremendous growth in server virtualization solutions," Mowrey says.

Wayside Technology, he says, has grown in part because of VMware's top-line surge and should continue to do so as an important distributor of the latter's software.

"Wayside, formerly Programmer's Paradise, is a technology services company targeting software developers and IT professionals.,” Mowrey says. “In 2006, more than half of the software Wayside purchased for resale carried the VMware label."

According to Mowrey, the cash-flush balance sheet now includes $4.34 per share in cash and near cash and no long-term debt. The shares currently trade at under 17 times trailing earnings, which is attractive, he says, considering the balance sheet and the stock's current 4.3% dividend yield.

A revitalized balance sheet, renewed cost-cutting and a streamlined focus have things looking up for a little-known microcap in the wireless broadband equipment sector.

After several years of spotty performance, San Jose, Calif.-based Terabeam Inc. (Nasdaq: TRBM) finally could be ready to break out. Formed through a series of acquisitions, most notably the acquisition of Proxim Wireless in 2005, Terabeam primarily provides core-to-client solutions for broadband municipal wireless networks. It has shipped more than 1.5 million wireless devices to more than 200,000 customers.

Terabeam, with a market capitalization of $48 million, estimates the value of the broadband municipal wireless market at $3 billion over the next three years. While Terabeam is a small fry in the wireless broadband equipment market, it believes it can continue to hold its own in the lower-profile muni and public safety segment of this fast-growing market.

Terabeam has taken several steps recently to position itself for sustained profitability and growth. In July, Terabeam raised $7.5 million in a private placement and sold two patents for $2.5 million in cash. Then, earlier this month, Terabeam announced the sale of its small, money-losing Ricochet wireless network. This move takes Terabeam out of the service provider business and makes it a more-focused, wireless equipment pure-play.

Thanks to recent cost reduction efforts, such as the outsourcing of more of Terabeam’s development activities to India, the company expects to realize $1 million in quarterly cost savings beginning in the third quarter. This reduced break-even level puts Terabeam in the vicinity of hitting cash flow break-even with just modest quarterly revenue growth.

Provider of WiMAX and wireless broadband solutions Alvarion Ltd. (Nasdaq: ALVR) announced before the opening bell Tuesday that wireless broadband internet server provider Allegro Networks will use its BreezeMAX system for the first WiMAX deployment in Australia.

This deal allows Alvarion to penetrate the Australian market by offering Australian businesses across the country access to a high-speed network services through its WiMAX product.

“WiMAX has a key role in establishing a robust, affordable, and efficient broadband network in Australia,” said Ted Pretty, Chairman of Allegro. “Businesses in regional Australia cannot afford to wait any longer to receive advanced broadband services. Alvarion was the one company able to meet our deadlines for true WiMAX infrastructure while maintaining the required quality of service.”

“Being chosen by a leading wireless ISP further demonstrates Australia’s commitment to WiMAX.” said CEO of Alvarion Tzvika Friedman. “We are pleased to be selected by Allegro Networks for their first commercial WiMAX deployment...”

Allegro said it will seek wholesale access to the backhaul fiber and other network elements of the Optus Elders consortium (OPEL). Australia’s federal government awarded these networks almost a billion dollars as part of the government’s “Broadband Connect” project for Australia. Australia’s government just recently jump started a broadband network with wireless and fiber technologies through private funding.

China Sunergy Co., Ltd. (Nasdaq: CSUN), which manufactures solar cells, announced this morning that it increased its second-quarter production of solar cells 93% on a year-over-year basis. Nevertheless, its shares fell $0.36, or 3%, to $13.61.

Shares of Fieldstone Investment Corp. (Nasdaq: FICC) are rising following news after Monday’s close that the Columbia, Md.-based mortgage banking company has received conditional approval from the State of New York for the merger of Fieldstone and a subsidiary of residential mortgage asset company C-BASS. Shares are up $0.55, or 17%, to $3.82.

If smart phones like Palm’s Treo have arrived, could broadband wireless be far behind? Smart phones can support data-intensive applications such as Voice-over-IP, video gaming, video conferences and movies, all of which need much bigger pipes to transport data than cellular phone networks can provide. Consumers and businesses want to have the same experience with the broadband Internet on their mobile phones as they have at home or in the office.

People on the move are still tethered to hotspots when it comes to gaining access to the Internet; their-WiFi enabled connections do not reach beyond 100-300 feet. On their cellular phones, interrupted service is sometimes a problem with voice calls, and Internet capabilities are mostly out of the question.

Telecommunications companies such as Verizon Communications Inc. (NYSE: VZ), Sprint Nextel Corp. (NYSE: S) and AT&T Inc.’s (NYSE: T) Cingular revived their mobile Internet data services by investing in broadband wireless networks, which commonly go by the moniker 3G. These third-generation networks are capable of transporting more data, equivalent to broadband connections available in homes and offices, but are concentrated in densely populated metropolitan centers. Their signals cannot reach the entire area of a city, let alone rural regions. 

The following are the most actively traded companies in pre-market trading among those with market capitalizations under $500 million (at 8:43 ET):