Sonus Networks Update – SONS

Stock is getting battered the past week or two with tax loss selling. Sonus is down 16+% this year.

There has been speculation that the stock is being manipulated. Sonus has been under heavy accumulation by one insider in particular. Senate Ltd. is controlled by one individual and it’s his money that is invested. Insiders like this employ market makers to do the buying (and selling) for them. One sophisticated strategy would be to sell short Sonus to add downward pressure on the stock. When the price declines, longer term accumulation occurs at the lower prices. Longer term, a high short interest with an ever-shrinking float could lead to a short squeeze opportunity when revenues start showing up in a significant way.

One large deployment with BT has yet to be built into revenue models with the analysts that cover Sonus. I believe the company will ‘beat’ current expectations. If margins hold steady and the customers that delayed the delivery of their next phase deployments show up, as management has indicated, the stock will be poised for a big start in 2008.

Sub $6 SONS is a steal. I believe 2008 will be a significant year. Here’s another opinion, Sonus Identified as IP-Based Voice Market Share Leader

Sonus: The Business Case For Packet Telephony

Wanted to share information on Sonus Networks in this blog. The following white paper offers some insight into the compelling case for VoIP. Voip Market Impact