Sonus Networks, Inc. (SONS)

[ClarkKant]

Mark this post! Short-term, there will be a squeeze again, like the one that took it from $8.49 to $8.80 the other day in the matter of minutes. These bounce plays lately are my bread and butter.

Long-term, here's what I see. Nice gap to fill to $13. SONS was already down almost -30% for the year since January, down from $21 to $15 so much of the bad news earlier in the week was already baked into the PPS. Their outlook called for -25% outlook for the year 2015 when the PPS was already down -30%. Now it's sitting down over -60% for the year.

5Yr historical chart data shows it's very near a 5yr low which was around $7.50 in December 2012 when the financials were much worse than what they are now (really, it's not even close, SONS is in WAY better financial position than it was back in late 2012). The 10yr low was at $5 back in 2009 when pretty much every stock hit all-time lows.

I Bought $8.10, $8.06 yesterday and $8.02 today. I have a nice lot of shares. The bounce could be super nice here. 10k shares on only a 15% bounce would put SONS at $9.20 and be able to walk away with a nice $12k profit. Patience will pay off.

Look at BITA chart after 6 down days down earlier this month after concerns from $80 to $46 and then pushed to $55, nearly a 20% bounce. The decline slowed on declining volume and then BOOM, a 20% bounce. Similar play here.

Much more reward than risk at this level and the trading ranges are getting tighter on decreasing volume everyday now, this is what you want to see.

We will be bouncing soon enough and I'll collect shares again under $8, $7.75 and $7.50 if it wants to go there.

GL