ENWV

[setravis]

From Pennyville to Dollarsville!

[setravis]

Now this baby is over 50 bucks.
What a run........just beautiful.Should have bought when I made the first post.

Chart update:

[setravis]

What's up?

[la-onda]

Hi Setravis,
everything is fine with EMWV.

The facts:
1)
Endwave Reports Third Quarter 2005 Financial Results
Endwave Generated 89% Year-Over-Year Revenue Growth and Increased Pro-Forma Profitability in Q3

SUNNYVALE, CA – October 18, 2005 - Endwave Corporation (NASDAQ: ENWV), a leading provider of high-frequency RF modules for telecommunications networks, defense electronics and homeland security systems, today reported financial results for its third quarter ended September 30, 2005.

Endwave reported revenues of $14.3 million for the third quarter of 2005, compared with revenues of $7.6 million for the third quarter of 2004 and $12.2 million for the second quarter of 2005. Cash, cash equivalents and short-term investments as of September 30, 2005 were $21.9 million compared with a balance of $22.0 million at June 30, 2005.

Net loss for the third quarter of 2005 was $193,000, or a loss of $0.02 per share, compared with a net loss for the third quarter of 2004 of $2.0 million, or a loss of $0.21 per share, and net income for the second quarter of 2005 of $318,000, or earnings of $0.03 per diluted share.

Pro forma net income for the third quarter of 2005 was $732,000, or earnings of $0.06 per diluted share, compared with a pro forma net loss for the third quarter of 2004 of $1.2 million, or a loss of $0.12 per share, and pro forma net income for the second quarter of 2005 of $424,000, or earnings of $0.04 per diluted share.

For the third quarter of 2005, pro forma net income was calculated by excluding the expensing of transaction costs for a suspended secondary offering of $773,000 and amortization of intangible assets of $152,000. For the third quarter of 2004, pro forma net loss was calculated by excluding the amortization of intangible assets of $148,000, a write-off of in-process research and development of $320,000, a write-off for the impairment of long lived assets of $389,000, and a restructuring benefit of $4,000. For the second quarter of 2005, pro forma net income was calculated by excluding the amortization of intangible assets of $152,000 and a restructuring benefit of $46,000. Management believes that excluding the items described above may permit investors to better compare results from period to period and more accurately assess the company's prospects.

"In what is typically a seasonally slow quarter, I am pleased to report that Endwave's growth continues at a rapid pace – and at $14.3 million in third quarter revenues, this represents the largest quarterly revenue total in our company's history," said Ed Keible, Endwave's CEO and President. "We have already exceeded our entire year 2004 revenues in just the first nine months of 2005, with a strong fourth quarter projected to follow," added Keible.

Endwave Third Quarter 2005 Summary:

-  Recorded quarterly revenues of $14.3 million, 89% higher than the third quarter of 2004, and 17% higher than the second quarter of 2005.
- Increased revenues from sales to customers in defense electronics, homeland security systems and other non-telecom markets to $2.3 million, or 16% of total revenues, in the third quarter of 2005. This represents 51% growth in non-telecom market revenues as compared to the third quarter of 2004.
- Delivered products to over 100 customers during the quarter. The largest customers for the quarter were Nokia, Nera and Siemens.
- Achieved gross margin of 32.5% in the third quarter of 2005, and profitability during the quarter increased to 5% of revenues, on a pro forma basis.
- Expensed $773,000 of transaction costs incurred for a secondary offering that will be postponed until further notice.
- Appointed senior managers to critical new positions, including Chief Operating Officer, General Managers for both the Telecom and Defense Business Units, and Vice President of Marketing and Business Development.
- Secured follow-on orders from Raytheon Company for RF subsystems for Smart-T, an advanced satellite defense communications program.
- Received additional orders from SafeView for switch arrays used in SafeScoutTM, its advanced personnel screening portal.
- Announced the commercial introduction of a proprietary integrated transceiver board solution, EpsilonTM Packaging, which significantly reduces the cost, size, and weight of typical RF subsystems.

Follow-on Offering – Update

The company also announced today that it will postpone its planned secondary offering until further notice. The company intends to convert the registration statement on Form S-3 that it recently filed with the Securities and Exchange Commission into a "shelf" registration statement, giving Endwave greater flexibility to complete an offering of securities in the future when market conditions are conducive to such an offering. Due to the suspension of the planned secondary offering, all accumulated transaction costs were expensed in the third quarter. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

2)

ENWV: Short Interest UP 22.3% to 2.3M in Dec 2005
Wednesday, December 28, 2005 06:00 ET

According to new short interest data from NASDAQ, short interest for EndWave Corporation (NasdaqNM: ENWV) INCREASED 22.3% to 2,253,845 shares for the month ended mid-December, 2005.

SYMBOL    NOVEMBER        DECEMBER          CHANGE       %CHANGE        DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------   ------------- 
ENWV           1,842,178       2,253,845        +411,667       +22.35%           6

Based on ENWV's 20-day average daily share volume of 442,599, it would require approximately 6 day(s) of buying to cover this short interest.

3)
Financial News:
http://www.shareholder.com/endwave/releases.cfm

4)
8th Annual Needham & Company Growth Conference
Date: January 10-13, 2006
Location: New York Palace Hotel, NY
Endwave will be presenting: Jan 12th from 10:30 to 11:00 AM
Endwave Webcast: Jan. 12, 2006 at 10:30 a.m. ET
Edward Keible & Julianne Biagini to represent Endwave
For more information please see the conference site.

5)
ENWV FAQ:
http://www.shareholder.com/endwave/faq.cf

6)
Institutional holdings:
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&timeframe=&intraday=&charttype=&splits=&earnings=&movingaverage=&lowerstudy=&comparison=&index=&symbol=enwv&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=ENWV
up to 35,2%

Why is ENWV down ?
Here is the answer:
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19428 / October 13, 2005
Securities and Exchange Commission v. Wood River Capital Management, LLC, et al., U.S. District Court for Southern District of New York (Civil Action No. 05-CV-8713) (NRB)
SEC FILES EMERGENCY ENFORCEMENT ACTION AGAINST JOHN H. WHITTIER AND THE WOOD RIVER HEDGE FUNDS ALLEGING FRAUD
DEFENDANTS CONSENT TO PRELIMINARY RELIEF INCLUDING THE APPOINTMENT OF A RECEIVER FOR THE TWO HEDGE FUNDS

The U.S. Securities and Exchange Commission today filed an emergency action against John H. Whittier, Wood River Capital Management, LLC, Wood River Associates, LLC, Wood River Partners, L.P and Wood River Partners Offshore, Ltd. The SEC's complaint alleges that the defendants repeatedly made material misrepresentations regarding the oversight and diversification of two hedge funds managed by Whittier--Wood River Partners, L.P. and Wood River Partners Offshore Ltd.

The complaint alleges from February 2003 to the present, investors placed tens of millions of dollars in Wood River Partners, L.P. based on promises that the fund would be broadly diversified and closely watched by an auditor. Instead, Whittier failed to have any audits conducted, allowed only a few employees to have access to the fund's portfolio and proceeded to amass an extraordinary position in one small-cap stock. By July 2005, that one security, the common stock of EndWave Corporation, accounted for more than sixty-five percent of Wood River Partners' claimed $265 million assets under management. This concentration in one stock vastly exceeded the ten percent cap on individual long positions set forth in the funds' offering memoranda. Wood River Partners purchased so many shares of EndWave stock that at one point the fund owned more than forty-five percent of that issuer's outstanding shares. But until last week, the Defendants never disclosed the size of their position in EndWave. The Defendants filed neither the stock ownership reports that were required to be filed when the fund's position exceeded five percent of the issuer's outstanding shares, nor the reports required to be filed when the fund's position exceeded 10 percent.

During the summer of 2005, Whittier launched a new hedge fund-Wood River Partners Offshore. By September, this fund also had an overwhelming concentration in EndWave. Whittier made similar misrepresentations about the diversification of this new fund, and similarly failed to disclose that he had placed the majority of its assets into one small-cap stock.

Since mid-July 2005, the price of EndWave's common stock has declined substantially. As a result, the value of the assets held by Wood River Partners, L.P. and Wood River Partners Offshore, Ltd. has decreased significantly.

The Commission alleged that the defendants violated the antifraud provisions of the Securities Act of 1933 ("Securities Act") and the antifraud and ownership reporting provisions of the Securities Exchange Act of 1934 ("Exchange Act"). The complaint also charges Defendants Whittier, Wood River Associates, and Wood River Capital Management with violations of the antifraud provisions of the Investment Advisers Act of 1940. For permanent relief, the Commission requested injunctions against future violations, disgorgement, prejudgment interest and civil penalties as to all defendants.

Simultaneous with the filing of the Commission's complaint, Defendant Whittier consented on behalf of himself and the Wood River entities to preliminary injunctions against future violations, an asset freeze as to the Wood River entities, an accounting and a partial asset freeze from Whittier, restraint from destruction of evidence, and the appointment of a receiver for the Wood River entities.

The particular violations alleged in the complaint are, as to all defendants: Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a); Sections 10(b), 13(d), 16(a) of the Exchange Act, 15 U.S.C. §§ 78j(b), 78m(d), and 78p(a), and Rules 10b-5, 13d-1, 13d-2, 16a-2 and 16a-3, 17 C.F.R. §§ 240.10b-5, 240.13d-1, 240.13d-2, 240.16a-2, and 240.16a-3; and as to Defendants Wood River Capital Management, LLC, Wood River Associates, LLC and John Hunting Whittier Sections 206(1) and (2) of the Investment Advisers Act of 1940, 15 U.S.C. § 80b-6(1) and (2).
Link:
http://www.sec.gov/litigation/litreleases/lr19428.htm
More details (24 pages):
http://www.sec.gov/litigation/complaints/comp19428.pdf

IMO this is a very undervalued stock!! Listen to the last CC.

your opinion/feedback is appreciated

Oliver

chart:

[Melf Elf]

Oliver,

Nice job on the fundamentals.  Applause.

ENWV looks like it's working on the Right Shoulder of an Inverse H&S bottom. 

The Bearish Rising Wedge was the Left Shoulder.  The downside target of about 9.45 when that broke is the Head.  It looks like we're working on the Right Shoulder.  The upside target if ENWV can take out 13.45-13.50 is about 17.45.

ENWV currently is sitting right at the bottom of the Kumo (Cloud), and the Tenkan Sen (thick green line) and Kijun-Sen (thick red line) have made a bullish cross.  MACD is about to go above the zero line if ENWV can rally here. 

In other words, the technicals are supportive of a rally, now the stock needs to capitalize on it and get going to the upside.   

Good luck!

[la-onda]

please listen to the AeA conference from 7th of November:
http://www.shareholder.com/endwave/medialist.cfm

42 slides presentation with lots of information 

[la-onda]

updated charts, BO soon
cheers
Oliver

[la-onda]

update:

[fous]

Hey Oliver,

Sorry i took so long to get back to you on this one.

Interesting story this one has.... What the upside potential is i really dont know, since the stock price was completly manipulated all the way up to the 50's. Though the financial growth looks to be good so up the stock may go.

Right now price action is in a descending wedge along with a symmetrical triangle within the wedge. A breakout from the wedge on increased volume will need to occur for me to be bullish on the stock. The below average volume lacks my interest as of right now.

As well, I don't trade stocks over $6. Good luck to yah on your trade though Oliver. And Happy new years!! Hope its a good one.

-fousc

[Leaira]

La-onda:  How do you get the StockCharts chart to display with all those indicators?  I'm only able to display 3 at a time (not counting volume and bollinger bands).

Thanks,
Leaira

[la-onda]

please use the link:

http://stockcharts.com/def/servlet/SC.web?c=enwv,uu[e,a]ehclyyay[d15][pc50!c200!c9!c14!c100!c20!d20,2!h.02,.20!f][vc60][iul14!la12,26,9!lh39,3!li14,3!lh14,3!lp14,3,3!lp5,3,3!le12,26,9!ld20!lyb20,2.0!lc20!lk14!lya7,14,28!lf!lg!lb5!lb14!lb39!lh45,17!lv25!lw25][J52583244,Y]&pref=G

if you would like to see another stock, insert your stock manually in the adress field 

http://stockcharts.com/def/servlet/SC.web?c=sva,uu[e,a]ehclyyay[d15][pc50!c200!c9!c14!c100!c20!d20,2!h.02,.20!f][vc60][iul14!la12,26,9!lh39,3!li14,3!lh14,3!lp14,3,3!lp5,3,3!le12,26,9!ld20!lyb20,2.0!lc20!lk14!lya7,14,28!lf!lg!lb5!lb14!lb39!lh45,17!lv25!lw25][J52583244,Y]&pref=G

[la-onda]

chart quotation from yahoo:

cheers Oliver

[la-onda]

please check the bolinger bands

[setravis]

please check the bolinger bands

I rolled the dice....
In @ $11.63

[la-onda]

Endwave Announces Employee Options Acceleration
Thursday January 5, 8:03 am ET

SUNNYVALE, Calif., Jan. 5 /PRNewswire-FirstCall/ -- Endwave Corporation (Nasdaq: ENWV - News), a leading provider of high frequency RF modules for telecommunications networks, defense electronics and homeland security systems, today announced that its Board of Directors has accelerated the vesting of certain unvested, "out-of-the-money" stock options previously awarded to employees and officers that have exercise prices of $21.00 per share or higher. As a result, options to purchase approximately 340,000 shares of Endwave stock became exercisable immediately.

As a result of the acceleration, options to purchase 338,995 shares of Endwave's common stock, which would otherwise have vested over the next three years, are now fully vested. This includes options to purchase 137,348 shares held by executive officers, options to purchase 201,647 shares held by other employees and no options held by non-employee directors. The options represent approximately 26% of the total options presently outstanding. The total weighted average option exercise price per share is $27.68.

The primary purpose of the acceleration of vesting of these options was to eliminate future compensation expense Endwave would otherwise recognize in its statement of operations with respect to these options upon the adoption of Financial Accounting Standards Board Statement No. 123 (revised 2004), Share-Based Payment ("SFAS 123®"). SFAS 123®, which was adopted by Endwave on January 1, 2006, requires that compensation expense associated with stock options be recognized in the company's statement of operations, rather than disclosed as a footnote to Endwave's consolidated financial statements.

As a result of the acceleration, Endwave expects to reduce the stock option expense it otherwise would be required to record in connection with the accelerated options by approximately $4.4 million over the next three years.