Aaron Katsman
www.IsraelNewsletter.com

News that Time Warner Cable (TWC) and Comcast (CMCSA) are discussing a plan to provide funding for a national wireless network using WiMax technology, has sent shares of the IsraeliCeragon (CRNT) surging higher. According to the report, “Sprint (S) and Clearwire (CLWR) have been working for months to cooperate on a WiMax rollout and are now trying to raise at least $3 billion for a joint venture, the report said. Under the plan the parties are reviewing, Comcast would put as much as $1 billion into the venture, with No. 2 operator Time Warner Cable adding $500 million.

Why is this such good news for Ceragon? Because Ceragon, the leading provider of wireless backhaul solutions for IP-centric networks,  has been rumoured to be a big winner if Sprint were to go ahead and build out the WiMax network. Ceragon stock has gotten crushed over the last few months, as Sprint bailed on their deal with Clearwire. The fact that we are again talking about a nationwide U.S. WiMax network, is great news for Ceragon.

For investors, if we hear some more good news from the company coming on the heels of this report, it could potentially send Ceragon stock back to the highs made last year. It’s important to note that this is not a stock for the weak of heart, but for volatility lovers, this may be a company to take a look at. 

Disclosure: Author’s fund holds a position in CRNT. He holds no position in any other stock mentioned as of 3/26/08.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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