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Traders at Palma are Bullish on PWAV

www.palmaresearch.com/default.aspx?viewreport=PWAV

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

For no obvious reason, Powerwave Technologies (PWAV) shares are up 40% today on huge volume.

There are no new research reports, no news of consequence and no financial filings to explain the eye-opening rally in the wireless telecom component company’s results. A spokesperson with the company’s outside investor relations firm said she there were rumors that the company had signed a sale/leaseback deal on its headquarters in Santa Ana, California - she says some investor claims to have seen the paperwork - but that the rumors are not true.

Powerwave (PWAV) this afternoon posted Q1 sales of $149.7 million, down from $226.3 million a year ago, and below the Street consensus at $161.8 million. But the wireless communications equipment company posted a pro forma loss of a penny a share, smaller than the Street consensus forecast for a loss of six cents a share.

PWAV, which rose 7 cents, or 8.5%, to 89 cents in the regular session, is up another 4 cents, or 4.5%, to 93 cents in late trading.

Talk about your powerful waves.

Powerwave (PWAV) shares have been cut in half today after the company provided a disappointing outlook for the fourth quarter. As noted yesterday, third quarter results were actually slightly ahead of expectations. But in a post-earnings conference call with the Street, the company issued disappointing guidance: the company now sees full year 2008 revenue of $880 million to $920 million, well below the Street at $952 million. That implies Q4 revenue of $171-$211 million, which is down from $238 million in Q3 and well below the Street consensus of $246 million.

There are some mighty strange things happening in the small-cap chip sector this afternoon, where the earnings reports are flowing fast and furious.