"Get ready for a bumpy ride as the market digests tighter credit, unfavorable future economic policy, and limited options for fighting inflation," says growth stock money manager Jim Oberweis Jr. Nevertheless, he advises, "But don't get all depressed on us; valuations for U.S. companies, relative to the rest of the world, are cheaper than we have seen in awhile."
In his The Oberweis Report he sees upside potential in two high tech communications stocks that he considers suitable for risk-oriented investors: Ceragon Networks Ltd. (NASDAQ: CRNT) and Synchronoss Technologies (NASDAQ: SNCR).
Ceragon Networks Ltd. he says, is a leading provider of high-capacity wireless backhaul solutions for cellular and fixed wireless operators, enterprises and government organizations.
He notes, "Its modular FibeAir product family is recognized as the gold standard for backhaul transmission and is also one of the top solutions chosen by cellular operators for SONET/SDH rings."
In the company's latest reported second quarter, he observes, sales increased 58% to $37.3 million from $23.6 million in the second quarter of last year. In addition, he notes, Ceragon reported earnings per share of $0.11 in the latest reported second quarter versus $0.04 in the same quarter of last year. Note that for disclosure, Oberweis states that clients of Oberweis Asset Management own 702,200 shares.
Meanwhile, Synchronoss Technologies, he points out, is the leading provider of on-demand transaction management solutions to the communication service provider (CSP) market.
He explains, "The company's ActivationNow platform was recently chosen to provide transaction order management for the activation of new Apple (NASDAQ: AAPL) iPhone." End users, or the consumers purchasing the phones and subscribing, can activate or deactivate services from their own home, without a visit to a retail store, he explains.
In the company's latest reported second quarter, he notes that sales increased 80% to $31.3 million from $17.4 million in the second quarter of last year, while earnings were $0.17 in the latest reported second quarter versus $0.05 in the same quarter of last year. Again, for disclosure, he states that clients of Oberweis Asset Management own 670,000 shares.
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
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