Dragonwave’s largest shareholder McDonald increases his position

He owns more stock than anyone else, but Dragonwave (TSX:DWI) shareholder Timothy Mcdonald is clearly still bullish on the Ottawa-based company’s prospects in 2014.

Mcdonald, who has no affiliation with Dragonwave other than as a shareholder, increased his position again last week. In the past month he has bought more than 200,000 shares of the stock in the open market at prices ranging from $1.36 to $1.50. Shares of Dragonwave moved from a low of $1.16 last November to $2.00 in January, but have fallen back since.

An SEC filing in January showed McDonald owned 6,346,904 shares of Dragonwave. The company has 58-million shares outstanding, according to Google Finance.

Mcdonald was described by the Ottawa Citizen’s Bert Hill last year as “director and retired managing partner of a Boston investment house”. Another investor who talked to Hill was Laguna, California’s Joe Powell, who said at the time that the company is “under accumulation by strong hands.” Other notable shareholders of the company include Millennium Management LLC, which owns about 3% and Nokia, which acquired just over 2-million shares when Dragonwave acquired the microwave transport business from Nokia Siemens Networks.

Shares of Dragonwave spiked to nearly $14.00 early in 2010 on the promise that its technology could reduce the enormous strain being placed on backhaul networks by the explosion in voice, video and data created by the proliferation of mobile devices. But investors bailed as the company’s losses mounted. CEO Peter Allen says the company expects to be profitable sometime, but he isn’t sure exactly when that will happen.

Shares of Dragonwave on the TSX closed today down .6% to $1.61.

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