Novatel Wireless (NVTL)’s MiFi Potential Not Grasped Yet, Thinks Barron's

Barron's says, for those who took positions in Novatel Wireless (NASDAQ: NVTL) and suffered a bruising, here is a bandage. Many analysts fell that Novatel’s new MiFi wireless router - that permits 5 different mobile computer users to connect to the Internet – is an extraordinary equipment.

Although Novatel could only achieve a sales of $ 38 million (much less than the $ 50 million expected by the market) from this router, its sales could ramp up in future. While there was some over-ordering by the mobile service providers, 2010 will be a very strong year for sales of this router.

Besides that, there are many positives. Novatel Wireless is debt free and has $5.55 per share in cash. While these limit the downside, the upside potential is good says Avondale Partners analyst John Bright.