Sonus Ready for Major Volume Spike (SONS)

Posted in after-hours, pre-market 
March 1st, 2011

Sonus Networks, Inc. (NASDAQ: SONS) rose handily last night and this morning we have shares higher with a pre-market volume spike.  The news was that the infrastructure equipment and software maker for wireline and wireless telephone service providers crushed earnings estimates.  Last night in teh after-hours session we saw shares up almost 30% at $3.92 on more than 2.5 million shares after the 4PM close.

This morning as early as 7:40 AM EST we have shares up around $3.80 on more than 30,000 shares.  The average volume here is about 2.6 million shares.  The 52-week trading range is $2.12 to $3.75, so today is likely to also mark a 52-week high.

The takeaway from last night and this morning is a simple one.  Look for an exponential volume move today.  The low share price will attract many new investors looking for that extra juice from low-priced stocks.  The magnitude of the beat is going to likely drive very active stock trading today for what was a market cap of $837 million.

JON C. OGG

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