DRWI, Dragonwire Update

J

jopocop

Stock is hanging in tough although hit with shorts. Today, GMP analyst revised buy target to $13.50, but the stock is only at $9.15. Seems to be basing.

Catalysts for strong upside will be any announced new deals and contracts to supply packet microwave network products to mobile carriers around the world. Has top and best product and designs and research, in this hot field of modern backhaul needed by telecoms and mobile carries, along with internet providers.

Canadian company, that has leading tech edge, around since 2000, market leader, heavy in supplying Clearwire for build out of 3G/4G network in USA and in Europe.

This stock used to be around $14 until short attack. Company applied for permission to buy back shares to defend the stock.

Strong buy at this point due to strong product, excellent sales, growth, hot sector, networks, etc, etc.
 
I too think Dragonwave is putting in a base. The monthly chart is starting to look like the formation of a decent setup, as is the weekly.
 
Since my original post, DRWI announced starting its stock buy back after regulators gave permission. The stock ran up to $10.50 upon that news announced, and since backed down.

The shorts will exit if they see announced new deals and certain extra earning growths. They have to exit as the already made a lot of money in bringing the stock down from $14. They are hoping for $8 if there is no good news forthcoming on the early May conference call.

However, Dragonwave will be announcing earnings within guidance previously stated and they will update on world wide sales efforts as well as the inevitable need for microwave backhaul which is their bread and butter product.

There is no question from my research that Dragonwave is aggressively seeking markets anywhere in the world, as they announced a deal in Greece a few weeks ago.

Not only that, Dragonwave sells products to channel partners who in turn are landing contracts.

A customer of Dragonwave is Ciena, a hot stock lately, who bought out the Canadian Nortel unit from the BK court dealing with fiber networks. Dragonwave is Canadian and has a lot of roots out of Nortel, so that Ciena fits very nicely with Dragonwave and vice versa.

Dragonwave is a definite growth company and has top and class AAA products in this sector, with many awards and great customer satisfaction and service. :)
 
The Motley Fool wrote about this stock in an article titled "Five Stocks Approaching Greatness".

That may be the kiss of death for your Dragon, sorry to say.
 
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