utsi

[tokyojoeskid]

Dave this truly hurts short term, id like to pick up some more but im already overweighted in this one. How much lower can utsi go . . . wow.

spike hit me with some TA if you could, I know this ones fundamentals are great but RS sucks. Whats your prediction on its bottom.

thx
TJK

[spikefader]

tokyojoeskid,

Not much to smile about. Sorry. How does good support at 25.00 sound??

[Dave]

Technicals on this one are crap right now, since it fell off IBD list. CC on ~27th should address some concerns about expansion, exchange rate margin pressure, and a few other minor issues. All news has been good this quarter. I sold this one to make some quick cash on IPIX, but will be buying in before the CC. Fundamentals on this one are just too good, and they will turn the pps around. When this one turns, it will shoot up to around 45 or so very quickly.

-Dave

[tokyojoeskid]

utsi leg up begins

Finally Utsi begins an upward run. Today released news on further expansion in western europe. Very important to the investing community seeing expansion away from China.

Also buying of Telos should help their CDMA technology and further expansion in mass market mobile phones.
"The moves give UTStarcom the ability to offer wireless operators around the world the means of offering cost-competitive network equipment based on several of the most widely used technology standards."

utsi options
Funny that I talked to my pops about buying some puts(which have been extremely depressed compared to stock price) and those darn things moved up 16% today. Looking at the 06 leaps. Just a couple days ago they were at the low sixish range, today closed above seven. I purchased some when the stock was at 30 for 10.60 the stock goes down less than four points to 26ish and the puts go down alittle over 4 points low sixes, doesnt seem right and as soon as I put 2 and 2 together, that there could be a easy big gain in store for them if utsi bounced back, it was almost too late.

If the volume continues to rush in this week before earnings, I think UTSI will finally get the pricing it deserves.
Banc of america Target is 47, that is a modest estimate if you compare its p/e right now to the industry. Not to mention its Rev and Eps growth far outpace the industry

May look at doubling up ion the 06 leaps as short term play

TJK

[tokyojoeskid]

ahhh

meant the 06 30 calls not the puts sorry im an idiot
tjk

[tokyojoeskid]

utsi

Continues the run to earnings on the 27th.
tjk

[Dave]

More good news besides the Telos aquisition (nice score of the only wireless IP-softswitch!) comes in the form of China slowing down on 3G. It looks like instead of forcing 3G down the publics throat, they are going to let the technology mature and wait for consumer demand before they begin to issue 3G licenses. This is AMAZING news for UTSI, as not only alleviates some of the worry that PAS was going to die off once 3G arrived, but it will also allow UTSI to fully develope a quality 3G component line. As this news becomes more publically digested, look for a very nice, steady gain. I am really looking forward to this CC!

-Dave

P.S. I don't often make price predictions because I am pretty much always wrong, but I am looking for this one to be back to 52wk highs (~45 or so) shortly.

[Dave]

Added some at 30.00 today. Transferred some from OFG as I don't see it making any strong moves for the rest of the week. Will be back in OFG shortly though. On UTSI, looking for .39 or better earnings, increased forward guidance, discussion on Telos aquisition, number of shares repurchased in Q1, discussion of india or South American contracts, as well as initial PAS deployments in the US. If done well, this CC could really pump this stock up...

-Dave

[tokyojoeskid]

cc

You and I both know they need to do alittle work on their PR skills pertaining to driving the stock higher.

Any U.S. contracts or European contracts would be a nice treat.

I already have a very large postion and if i made it bigger I would be on margin. Wanted to add when it hit 26 through the 06 30 calls but never pulled the trigger. I might try to take a larger postion after today, but im not going to make any bets on the CC even though I know it will go great.

we will see what happens in a couple of hours

tjk

[spikefader]

hope this is wrong for you, but fyi:

[Dave]

Great CC and earnings, guided up to 3.5 billion for 2005 from previous 3 billion, with 33% of that coming from outside China. From todays action it looks like it will take some actual contract announcements to start it pushing up again. Not to mention stuff like this, from CBS Marketwatch:

"UTStarcom (UTSI: news, chart, profile), off 7 percent to $28.30, was the biggest decliner. The company posted quarterly results the day before. While earnings rose, revenue fell from the prior quarter."

No shit, their Q1 (weakest quarter) revenues were down a bit from Q4 (strongest quarter)?!?! They don't even mention the Y/Y growth. What kind of morons publish this crap and how do they keep their jobs?

Sorry, just a bit frusterated on this one and OFG today. Doh!

-Dave

[MEA_1956]

FWIW

Thats OK Dave.

I fell your pain also

[tokyojoeskid]

Call me crazy but I picked up some more UTSI as it crossed the 20 barrier. I will be stopped out if it goes back under 20, but I am holding these new shares until they hit 24-25.

[Dave]

I am holding this one until next year, looking for 2-3x what it is trading for now. The company is too good to sell at these levels.

Go UTSI!

-Dave