The Black Box

[satorino]

I have rarely seen a stock as compressed as SONS. In terms of the fundamentals and the unfolding stories this stock should trade higher. Indeed it was at 10 a year ago, based on its potential in voip. Now that the potential is starting to be seen, and VOIP has become a household word, the stock is struggling at 6.
The delisting/accounting debacle has done quite a job to this stock, and the management lack of guidance has apparently done the rest. There is a bearish sceptical story floating around about sonus, dictated also by the fact that with 300mil cash they dont need investment bankers, who in turn dont need to praise anybody.
Add to this hedge fund shorting, based on that bearish story, and you have a stock that cant put any gas in its moves.
So unless we have a significant and clear announcement, this stock is probably going to waver between 6 and 6.50 for a while. It might be that the presentations of next week will move it, but I believe we will have to wait until the CC, on march 3, when the Street will change its mind about Sonus, and the bearish story will have to be discarded, to see a strong appreciation of the pps.
jmvho.
sat.