CommScope Selloff Is Opportunity in Light of Revised Guidance

Source: Thinkstock

CommScope Holding Co. Inc. (NASDAQ:COMM) caught my eye on Tuesday as it traded down 5 percent. Should you take advantage of this selloff? The company itself provides connectivity and infrastructure solutions for wireless, business enterprise, and residential broadband networks worldwide. The company operates through three segments: Wireless, Enterprise, and Broadband.

The Wireless segment offers macro cell site solutions, including base station antennas, microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors, amplifiers, filters, backup power solutions and small cell DAS solutions comprising distributed antenna systems that allow wireless operators to enhance spectral efficiency, and cellular coverage and capacity in network conditions, such as commercial buildings, urban areas, stadiums, and transportation systems. It provides its solutions primarily under the Andrew brand.

The Enterprise segment offers voice, video, data, and converged solutions consisting of optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, network rack and cabinet enclosures, intelligent building sensors, and LED lighting control systems, as well as network design services under the SYSTIMAX and Uniprise brands. Its solutions support high-bandwidth applications, including storage area networks, streaming media, data backhaul, cloud applications, and grid computing. This segment also provides iTRACS, a data center infrastructure management software.

The Broadband segment offers cable and communications products that support the multichannel video, voice, and high-speed data services. It serves wireless operators as well as enterprise customers. The stock is being punished, but I think you can take advantage of the selloff given some recent news out of the company.