WiMAX Doubts Dispelled, Alvarion Spikes; Is Omrix Back?

Last week, WiMAX (wireless broadband data communications) took center
stage in the tech sector with the announcement on Wednesday by Sprint
Nextel Corp (S), and Clearwire Corp.<!----> (CLWR), that they
had finally decided, after many months of prevarication, to merge their
WiMAX networks. Backed financially by giants such as Intel Corporation
(INTC), Google Inc. (GOOG), and cable companies Comcast
Corp. (CMCSA) and Time Warner Inc. (TWX), the move has
rekindled excitement among investors about the technology.

Of the Israeli companies in the sector, Alvarion (ALVR)
soared 28% over the week, most of which I attribute to traders who had
sold short and then purchased shares and have now been "crushed" for
two reasons. Last Monday, Alvarion unveiled better-than expected
results and guidance, and this was followed two days later by the
aforementioned announcement from Sprint and Clearwire. Latest figures
released last Friday show that short interest in Alvarion had doubled
to 2.8 million shares in April.