Telestone Technologies Corp. (fka TSTC)

[solarity]

TSTC - a very solid bet here. See following post from TheStreet.com dated 10/7/09

Telestone Technologies(TSTC Quote) provides 2G and 3G wireless communication access coverage solutions to telecom companies such as China Mobile(CHL Quote), China Telecom(CHA Quote) and China Unicom(CHU Quote) through its branch offices in China across 26 provinces.
A number of factors should support this company's growth. Before we discuss them, however, let's look at what Telestone does. The company:

Develops wireless, IP, CATV access network unification solutions technologies (WFDSTM) that are proprietary for carriers or building owners for their local information access network.

Designs and manufactures telecommunication equipment used in its access network systems or sold directly to other telecom vendors.

Implements its access solutions by installing the network systems at client sites through its nationwide branch offices.

Following are important bullish factors for the company and its stock:

The Chinese government will spend $70 billion over the next three years on 3G initiatives. This creates both visibility and acceleration in TSTC's business.

TSTC has aggressive goals over the next two and a half years to increase its domestic market share from 5% to 33%, indicating that it intends to capture a good deal of government-allotted spending with its new WFDSTM technology.

International business accounts for less than 5% of TSTC revenue. TSTC plans to expand its operations in the U.S. and other developed markets with its WFDSTM technologies, while serving those that are underdeveloped and behind the technology curve with its mature 2G technology to extend the life cycle of its 2G products.

TSTC has issued 2009 guidance of $70 million in revenue, up 100% year over year. Based on its 2009 first-half performance, we assume TSTC can minimally maintain 17% net margins, implying an EPS figure of $1.14. (15% tax-rate assumption). Our EPS assumption is likely conservative, as Telestone's annual after tax margins are typically around 20%.

Telestone can address a multitude of wireless and all types of fixed cable lines needs, including those associated with security, phone, TV and computer applications with this new technology. Before 2009, these needs were addressed with separate solutions resulting in higher costs and less efficiency, exacerbated by architectural constraints.
The company tackled this dilemma in 2008 and 2009 when it launched its WFDSTM technology.

"As an all-optic network, WFDSTM combines the technologies of ROF (radio over fiber) and its proprietary system components to transmit all kinds of information feeds into a building. This system supports all mobile telecom networks and a variety of other networks including WLAN, FTTH, telephone networks, and video surveillance systems. The benefits of the technology are substantial cost savings over old technologies, low loss in information transmission, easy and quick installation, low intrusion to the construction and minimal maintenance."
In simple terms, the WFDSTM platform allows all aspects of a client's wireless and wired needs to be addressed as one comprehensive solution. WFDSTM has become more significant since China began granting third generation (3G) licenses during the first half of 2009. 3G systems put greater technical demands on the communication networks in buildings due to signal strength and frequency -- demands that WFDSTM can handle much more effectively than traditional wired and wireless methods.