When Vertel (VRTL), a provider of software for telecom networks, announced on Apr. 26 that Nokia had opted to use its products, Vertel's stock jumped six points, to 20. That was a big boost after the stock's precipitous plunge from 45 in the wake of the market sell-off that began in late March.
Vertel's software facilitates the interconnection of diverse communication systems. It enables such devices as cellular phones to become an integral part of a company's network. In the case of Nokia, a major supplier of cellular phones, Vertel's software will improve the flexibility and speed of Nokia's interfacing network.
Vertel's stock has since slid to 15 5/8. But not to worry, says one California money manager, who is betting that Vertel's stock will move toward the old highs.
He says two more telecom giants--Ericsson and Nortel Networks--will soon announce their selection of Vertel's software. Ericsson makes advanced systems and products for wired- and mobile-phone networks. Nortel provides telephone, data, wireless, and wireline products and services for the Internet.
Other companies that already use Vertel's software include Compaq Computer, Alcatel, and Palm Computing.