Many investors fear Novatel Wireless. The company, which was supposed to ride the wireless broadband wave in 2006, instead ran into a number of problems. Its shares fell about 19% in 2006, hitting a low of $8.14 in November. But there is good news. The company is riding the demand for increased broadband wireless services; its developing new applications business is turning around; and the stock is beginning to rebound as well. I believe that this year, demand for Novatel’s products will grow and investors will be rewarded.

To put Novatel’s (nasdaq: NVTL - news - people ) rebound into some perspective, let me quickly explain what happened over the past two years. No question, Novatel went through a difficult time in 2005 and early 2006. The company, which makes wireless PC card modems, reported disappointing earnings for the fourth quarter of 2005. Even so, the company ramped up its R&D spending to develop several technologies that would one day be embedded into laptops to provide high-speed connectivity rather than relying on add-on PC cards. Novatel took a charge of $2.3 million to write down its inventory of old 2.5G data cards.
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