This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

December 17, 2010 - Powerwave Technologies, Inc. (PWAV-NASDAQ) engages in the design, manufacture, marketing, and sale of wireless solutions for wireless communications networks worldwide. It offers antennas, boosters, combiners, cabinets, shelters, filters, radio frequency power amplifiers, remote radio head transceivers, repeaters, tower-mounted amplifiers, and advanced coverage solutions for use in frequency bands, including cellular, PCS, 3G, and 4G wireless communications networks.

In 2000, just before the apacolyptic collapse of the market, PWAV sold for $75.40 a share. Earnings were 71 cents that year. It was a good year. But then 2001 came. Earnings plummeted to negative 33 cents. You can guess what happened to the stock. But can you guess that it went to $8.80 by end of the year, only to find a bottom at $2.60 near the end of 2002? This is one of those stocks, the kind that causes sales of Pepto-Bismol to reach new highs. It's also very small. If you are interested in very volatile stocks with volatile earnings, read on.

Powerwave is making a comeback. Higher capital expenditures by North American wireless companies has orders flowing and revenues rebounding. Sales fell from $890.2 million to $567.5 million in 2008 to 2009. This year, 7 analysts have a consensus estimate for revenues of $594.65 million, up 4.8%, then see $660.87 million next year, a further rise of 11.1%. In the third quarter, sales were up 13%, driven by higher demand in the Americas and Europe regions which more than compensated for the lower revenues in Asia Pacific.

Earnings are moving in step with sales. In the third quarter (ended September 30), they were 6 cents a share, up from 1 cent last year in the third. For the fourth period, consensus from 8 analysts is for 4 cents compared to minus 5 cents last year in the fourth. For the full year, look for 11 cents, up from 1 cent in 2009. Next year, expect earnings to double to 22 cents (the range among analysts for next year goes from 16 cents to 33 cents).

More numbers: Price to sales ratio is .60. Operating margin for the last 12 months was 3.32%. Return on assets was 2.88%. Both Profit margin and Return on equity were negative due to losses. There's total cash of $70.04 million for 53 cents a share. Total Debt is $274.08 million. Current ratio is 2.34. Book value is - $.04. Beta is 3.07. (Again, this stock is only for the most aggressive investors.) In the last 52 weeks, the stock is up 92.31%. There are 133.13 million shares outstanding with a Float of 83.34 million. Insiders own 25.63% of the stock. Institutions have 48.7% of the Float. There is no dividend.

Since late 2002 when the stock hit $2.60, it rallied to $15.80 by 2006, then started to fade, finally crashing in early 2009, finding its low point at 20 cents a share. As the title states, this one is only for the brave.

- Company Web site: www.powerwave.com

- Ted Allrich