As I said in the original analysis of DRWI, I still like DragonWave far more on valuation metrics... it's priced at $13.75 for 65 cents worth of earnings (year ending Feb 2010), whereas Ceragon is at $12.60 for 17 cents of earnings (year ending December 2009). Even going out another year, estimates are for 93 cents for DragonWave v 40 cents for Ceragon. But the market seems to be more than happy to pile into Ceragon at this massive discrepency in valuation.
On chart alone, Ceragon Networks is a "buy, buy, buy".- another stock so strong of late it simply dances along its 10 day moving average. These are some of the conundrums one faces each day - do you toss out valuation and simply chase charts? In this market, the answer has been yes.
Long DragonWave in fund; no personal position
