Meru Networks, Inc. (MERU) provides wireless LAN solutions which are designed to optimize enterprise networks. This stock has been crushed in the past year and now trades at about $3.90, well below the 52 week high of $27.33. The stock was clearly overvalued at that level and investor expectations for growth were also too high in the past. However, the company is expected to grow in 2012, and it has the resources to do so. Meru has a strong balance sheet with no long term debt and about $40 million in cash. The company recently reported that revenues for the fourth quarter of 2011 were $23.3 million, up 13% from the $20.5 million reported in the fourth quarter of 2010. Revenues for all of 2011 increased by about 18%. While Meru did not report profits in recent quarters, it might be able to achieve profits in the next couple of quarters, if sales continue to grow at the current pace. A profitable quarter would be a very positive catalyst for the depressed share value. With the stock trading near the 52 week lows, and insiders making substantial buys, this could be a classic "buy low" opportunity. On February 7-10, 2012, Barry Newman, (a director) reported buying 100,000 shares in a transaction valued at over $350,000. This insider buy stands out due to the transaction value and because the stock is being bought near the 52 week low.
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