The word on the Street is that BWNG is still relatively cheap compared to their peer group and the company should be moving through positive EBITDA numbers soon enough and through 2007. This is why CIBC World Markets upgraded the stock this week to a BUY with a near term target of $18.00. Merriman Curhan Ford has a Buy with a target of $19.00.
Besides an improving EBITDA, the company will benefit from underlying macro trends that all fiber stocks should benefiting from lately, but overall, BWNG is a better pure play vs. RBOCs for example. Lets not forget the Hutchinson deal (symbol HTX) owned by the richest family in Hong Kong or the Forbes listed $2 Billionaire John de Mol that has been buying shares according to EDGAR filings (under the name of his firm Talpa) totaling over 3.8 million shares.
The Hutchinson deal, improving EBITDA, and Talpa investments are positive factors in owning this stock.
Other near term catalysts are: Pending news of the new CEO, $100,000,000 sitting in the bank for future acquisitions to expand their reach and further improve on their EBITDA, and high speculation about BWNG being a takeover candidate itself on the horizon.
