Among the biggest winners in Monday’s early trading are Ceragon Networks (Nasdaq: CRNT), YRC Worldwide (Nasdaq: YRCW) and Newpark Resources (NYSE: NR).

Ceragon Networks’ Slump comes to an End

Analysts at Merriman Curhan and Morgan Joseph are either lucky or smart. Both firms just boosted Ceragon Networks (Nasdaq: CRNT) from “neutral” to “buy,” just as the provider of wireless telecom equipment secured a solid $9 million new order from the Philippines.

Little-known Ceragon has built an impressive track record in emerging markets such as the Philippines and India, helping those countries’ major telecom operators upgrade their wireless networks to handle advanced, high-speed data communications. The company is also a key supplier to Clearwire (Nasdaq: CLWR), which is building a high-speed mobile network in the United States.

#-ad_banner-#In the past few quarters, the company posted solid results and boosted sales at a respectable clip. Yet its shares have taken a big hit in this sell-off, and the price-to-earnings ratio (P/E) on projected 2011 EPS has fallen from 20 to 12 in just the past three months, even as per-share profits are expected to grow more than +40% next year. This morning’s order from the Philippines increased the likelihood that the projected growth forecasts will be met.

Part of the recent sell-off in shares is attributable to a slowdown in orders from Clearwire, and that could persist into the June quarter as well, as Clearwire works off its inventory of Ceragon equipment. Orders and sales to this key customer could rebound by the September quarter, boosting the still-growing international business. As an added kicker, $92 million (37%) of the company’s market value is held in its cash balance.

Action to Take –> Investors should prepare for some noise out of the June quarters, but shares are undeniably cheap based on the mid-term and long-term view. Potential second-quarter weakness is likely already factored into the stock, and can be bought at these levels, even after Monday’s gains.

————————————-

Truckers set to turn Up

It’s been a forgettable few years for truck-based freight carriers. The weak economy hurt both volumes and pricing, turning an industry with a history of solid profits into a money-loser. Rail-based freight carriers turned the screws further, aggressively pricing their services to levels that made it even harder for the truckers to compete. Adding insult, union-negotiated wage rates made it harder to bring down costs, as we noted in our look late last month at Arkansas Best (Nasdaq: ABFS).

But a long-awaited turnaround may just be beginning. ABFS’s rival, YRC Worldwide (Nasdaq: YRCW), which had a near-brush with bankruptcy, just announced that volumes are rising, operating profits will be in the black in the second quarter, and lenders have given the company even more wiggle room. That’s good for a +10% jump in Monday trading. Barring another economic slowdown, YRC will not likely have to face a bankruptcy judge. But management notes that the balance sheet remains precarious and will need a little more support in coming months.

Action to Take –> We suggested to investors in late May that shares of Arkansas Best appeared very oversold, and that thesis remains intact. But shares of YRCW simply carry too much risk, especially with concerns that any economic growth will remain muted. To the extent that the economy does slip back, and the weakest hands such as YRC flush out, that could be an opportunity for healthier rivals such as Arkansas Best.

————————————-

Newpark Resources Higher on Cramer Comments

Shares of Newpark Resources (NYSE: NR) shot up +10% at the market open, and have been rising further from there. Newpark provides a wide range of products and services to drillers, including waste disposal services. The shares’ ascent is due to bullish comments from CNBC’s Jim Cramer.

In this particular instance, it appears that Mr. Cramer needed to do more homework. Newpark’s waste management services entail the waste that is typically generated from regular drilling activity, and not from a massive clean-up as we are now seeing along the Gulf. In fact, Newpark may take a near-term hit to its business as drilling activity in the region slows down.

Action to Take –> If history is any guide, shares will give back much of Monday’s gain once investors go past Mr. Cramer’s cursory research. Newpark is indeed an attractive stock — in the long-term — but not for the reasons that the stock evangelist believes. If you like this name, wait for full clarification on how much the drilling slowdown will affect its business.