Break-Out Performers: RELL, NVTL, GILT

Trends, Charts and Exclusive Opinion

Three Stocks Breakaway from the Early Session Profit-Takers

RELL: Down Y-O-Y; Company posts +$0.24 EPS for Q2 2010

NVTL: Unveils Intelligent Mobile Hotspot Platform at CES

GILT: 3-Months of Global Top-Line Sales Pushes Stock Higher

Gaining 16.23% this morning is Richardson Electronics Limited (RELL) http://www.rell.com/ currently trading in the $7.09 range. RELL topped its 3-Month average daily trading volume in the first hour of todays session. RELL set a new 52-week high today, surpassing its previous high of $6.46 set on 11-20-09. RELL has trailing twelve month revenues of $466 million and is widely held by institutions. RELL has a 3-Month floor of $5.50 with strong support at $5.75 and spikes into the $6 range, but todays Q2 2010 earnings release sent the shares soaring into the $7 range.

I don�t believe that RELL has run its course upward and can make a bottom at $6 and trade into the $8 range in the near-term (3 Mo). RELL is a near-term �Buy� for me based on the strong momentum of the wireless sector and RELL�s previous success (when times are good or bad) in making and selling its products for the wireless and display systems markets.

The RELL Q2 2010 numbers released yesterday were off from its Q2 2009 numbers, but not by much... net sales for Q2 2010, ended November 28, were $115.9 million, a 12.5% decrease from net sales of $132.6 million for Q2 y-o-y. Income from continuing operations during Q2 10 was $! 4.3 mill ion, or $0.24 per diluted common share vs. $5.9 million, or $0.31 per diluted common share, during Q2 09.

�We were very pleased with the Richardson team�s execution during the second quarter as our revenue, working capital management, and cash flows were in line with our expectations. While our year-over-year revenue decline reflects the uncertain global economy, our strengthening sales trends provide confidence that our business environment is improving,� said Edward J. Richardson, Chairman, CEO and President of RELL.

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Gaining 4.31% this morning is S&P SmallCap 600 company! Novatel Wireless Inc., (NVTL) http://www.novatelwireless.com/ currently trading in the $8.48 range. NVTL remarkably has a 3-Month average daily trading volume of 1,288,770. That tops a lot of Mid-Cap stocks. NVTL has a 52-week high of $13.70 set on 09-17-09. That�s a $5+ spread in 3+ months. On a 30+ million share public float, NVTL has over 6 million shares short as of 12-15-09. That�s a lot of downward pressure, but NVTL is holding its own in this current range. NVTL has a 3-Month floor of $8 with support at $9 and you�ll see in the chart where NVTL dropped from $12 to $8 at the end of October (on Q4 Outlook News) released during its Q3 report.

NVTL is a near-term �Watch Closely� stock for me. The cautious Outlook doesn�t cause me concern as much as the number of shortsellers. All those shorters are not going to want to �buy high�. If NVTL can posts gains like today, steadily, the shorters will take their losses and get out and the near and short and long term buyers can once again dominate trading and increase NVTL share value back towards its 52-week high.

The Gain today for NVTL came on news out of the CES show being held in Las Vegas this week. NVTL announced the release of the Company�s MiFi Intelligent Mobile Hotspot Software Platform which provides new revenue opportunities for wireless operators and enables markets and usage patterns that have never before existed. The MiFi software platform enables any WiFi-enabled device to take advantage of its applications, and its onboard web server enables the MiFi to connect to remote data locations, retrieve data and present it to the user either online or offline. �� �

As a matter of note: the NVTL Q3 profit results were strong and beat analysts estimates. The projected Q4 income between 4 cents and 12 cents per share is what caused the stir.

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Gaining 7.92% this morning is Gilat Satellite Networks Limited (GILT) http://www.gilat.com/ currently trading in the $5.55 range. GILT easily topped its 3-Month average daily trading volume early in todays session. The GILT current price topped its pervious 52-week high of $5.21 set yesterday. GILT is on a roll. GILT has trailing twelve month revenues of $237 million and has wide institutional ownership of shares. GILT has a 3-Month floor of $4.40 with support at $4.60 and then- (see the chart) this spike into the current price range. GILT is a near-term �Buy� for me.

I don�t believe the stock is done climbing. I believe investors are looking back in their due diligence and finding this is a top-line driven company with a true global growth strategy. The November 16 release of Q3 results for the third quarter ending September 30, 2009 posted a positive $0.06 per diluted share of GILT vs. a net loss of $0.01 per diluted share, for Q3 y-o-y.

GILT is a provider of products and services for satellite-based communications networks. GILT has shipped over 750,000 Very Small Aperture Terminals (VSATs) to more than 85 countries across six continents. GILT has 16 sales and service offic! es world wide and sells a full line of high-performance VSATs under the SkyEdge(TM) and SkyEdge II Product Family.

GILT just brought in a deal from Africa and in the past months has brought in deals like: a Gilat SkyEdge II broadband satellite communications network covering more than 3,500 rural sites nationwide to Telefonica del Peru.

GILT has also recently done deals in Kazakhstan, produced a multi-million dollar contract from a government defense agency in Asia to deliver a turnkey broadband communications solution and was chosen by Cable & Wireless Panama, Panama's largest telecommunications operator, to provide a SkyEdge II high-performance network that will be used to deliver broadband Internet to hundreds of schools in remote areas nationwide. Similar recent deals in Columbia, Brazil and Argentina show the aggressive revenue seeking temperament of GILT management.�

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