BUY Mitel Networks at $4.01

Mitel Networks Corp. (NASDAQ-MITL)
Price July 6, 2011-$3.95

MITL just hit a new 52 week low today.

They are a net debtor (about $5 a share in net debt) so this is a bit different than most of our recommendations. But MITL has managed its business well over the past few years.

Their latest quarter results (April 30, 2011) were about breakeven before income taxes and they paid down about $45 million of debt over the previous 12 months.

Analysts are projection a return to profitability in the upcoming quarter. If they are right, this stock should pop as it is trading at less than 40% of our valuation.

Average trading volume is about 42,000 million shares a day, so patience is required.

Mitel Networks Corporation
Mitel is a global provider of business communications and collaboration software and services. Mitel’s Freedom architecture provides the flexibility and simplicity organizations need to support today’s dynamic work environment. Through a single cloud-ready software stream, Mitel delivers a powerful suite of advanced communications and collaboration capabilities that provides freedom from walled garden architectures and enables organizations to implement best-of-breed solutions on any network; extends the “in-office” experience anywhere, on any device; and offers choice of commercial options to fit business needs.


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