Sunday, November 2, 2008

Weekly Recap - Markets rally

The stock closed at $2.38, up 46 cents or about 24% for the week. The markets were up double digits recouping the previous week's loss. Normally, these type of numbers would be huge news but the wild moves (up and down) are more the norm than the exception. The Fed rate was cut by half a point to 1%. In the near term, the governments all around the world are trying to will the market to go up.

UT joins iptv forum - UTStarcom, Inc. (Nasdaq: UTSI - News) was recently accepted into the Open IPTV Forum, a telecommunications industry organization charged with publishing standards-based specifications intended to expedite deployment of Internet Protocol Television (IPTV) services to telecom operators, consumer electronics manufacturers and network infrastructure providers around the world.

UT earnings on Nov. 6 - Q3 earnings to be reported this coming Thursday.

Interview discussing UT strategy/growth in Indian broadband/iptv- Manish Matta, senior director of marketing at UTStarcom (News - Alert), explained that the issue in India is not due to a lack of technology, but a lack of consumer awareness regarding the benefits and applications enabled by broadband. There were some good comments on the article as well from fellow shareholders. We learned from the article that there is about 800k live iptv users in China on UT equipment. Thats up from 538k in April. While the growth rate is good, it actually seems low since it included the additions from the olympics.

Alcatel-Lucent earnings - Restructuring, selling assets, focusing on the client/new technologies, trying to return to profitability...........sound familiar. IF ALU can go up, UT can as well :-)

Comment on stock price - What are the chances that UT will see $3 soon? As long as the markets don't make new lows and nothing seriously bad in the earnings, that should be reasonable. Thats still a 26% gain. What are the chances that UT will get to $5 in the next year? UT has always hit $5/share so thats atleast a decent bet as well. Thats 110% from here.

Have a good week everyone and hope UT's earnings call will be much better and shareholders can recoup the 50% loss since the last earnings call.