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| AUTHOR:
alex oliver |
RANK:
--- |
DATE:
Nov 27, 2001 |
Sonus Networks (SONS) was formed in 1997 with the goal of building the premier franchise in packet-based voice infrastructure equipment for the new public telephone network. So far, the company has built an impressive technological platform under the guidance of experienced management. And the company's top line is expected to nearly double this year. But not all things are rosy at Sonus.
Enter industry giants such as Cisco (CSCO) and Lucent (LU). Sonus must wrestle the market away from these companies, and do it under a tight budget. With $136 million of cash and equivalents and minimal debt, Sonus is relatively healthy (financially), but will have to burn through some of the cash in the coming quarters as the networking market recovers.
Going forward, the company appears to be on the leading edge of technology within its market. If it can increase its customer base as the competition from industry giants heats up, Sonus should enjoy higher share prices. And if the stock remains cheap, some think that Sonus would be a likely takeover target for one of the richer networking giants. Either outcome would be good for investors like the m100, but Sonus is going to have to earn it.
What are your opinions: Is it safe to move into the networking industry yet? If so, does the group like the prospects for SONS, or are there other more attractive companies?
And if you like SONS, what are your reasons?
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| AUTHOR:
wildmap |
RANK:
m100  |
DATE:
Nov 27, 2001 |
PAST
RANK:    |
I'll repeat my comments from an earlier post regarding tech companies.
"There's tech and then there's tech. My investment systems are all earnings driven - explosive earnings - and even during the worst bear market for tech since 1974 many tech companies have enjoyed significant growth in sales and earnings.
Most of these companies have gone down with the general market, or trended sideways in basing patterns, and very few have had their run. The past few weeks have been a maginificent rewarding of that growth momentum.
Yes, the dogs of tech have risen too, but they will fall be the way-side once this rally peters out, while the true tech growth companies should continue their momentum, and become the new stock market leaders of tomorrow.
I won't mention names, since we are in a competition, but my overall advice is: let earnings show which technology has the staying power to make it in the market place."
SONS looks like one of the 'dogs' of tech. It might go on a run, but why bury your money in a company that's losing money, and slated to lose even more money going forward?
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| AUTHOR:
njacoby |
RANK:
Top Quartile  |
DATE:
Dec 08, 2001 |
| PAST
RANK: |
| It is difficult to find attributes for this business. You focused on the only fundamnental attribute it has CASH. The company has lost money consistently and produced negative operating cash flow as well. Their revenue growth rate seems rapid, but their cost of goods sold took a large hit producing negative gross margin. Don't know why. On a technical basis the stock looks dreadful. You are clearly an astute fellow, move on. Look for strength somewhere else. |
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| AUTHOR:
alex oliver |
RANK:
--- |
DATE:
Dec 11, 2001 |
Sonus Networks (SONS) was among the top sells for the m100 this week. The company hit a 10-week high this week amidst rumors that it may be a take-over target due to its strong position in voice-over-IP technology. Among the potential suitors are Sprint (FON) and Cisco (CSCO), both of which are interested in upgrading their networks to include technology currently offered by Sonus.
While investors shouldn't bank on the acquisition, comments made by both Sprint and Cisco make Sonus look ripe for the picking. Anyone putting any faith in these rumors, or would you rather look elsewhere for an investment right now? |
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| AUTHOR:
robin |
RANK:
Top Quartile |
DATE:
Aug 27, 2003 |
| PAST
RANK: |
Back in Nov 01 when these original posts were made, SONS was at $5, and just about to take a big fall. By October of last year, it had bottomed out at 18 cents, ouch. The m100's selling at the end of '01 certainly looks wise in retrospect.
Now, things have changed. The stock is almost at $7, after a smooth & steady climb since last October's lows. SONS has showed up repeatedly as a "top buy" for our top members during that time, another good move.
What's ahead for this company, and for this stock in your portfolio? More good things? Are you still a buyer? If you're holding the stock, what's your projected exit point? |
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| AUTHOR:
sstewart1 |
RANK:
--- |
DATE:
Aug 27, 2003 |
PAST
RANK:  |
Telecom infrastruture still uses a lot of "circut switching" when sending voice communication over its networks...the new technology/architecture is "packet switching". When telecom companies upgrade their infrastruture using packet swithching they can send voice communication over the internet. This is called VoIP (Voice over Internet Protocal) Sonus is the leader in making "packet switching " products.
The reason to own this company is to participate in the upgrade infrastucutre cylce by telecom carriers as they migrate away from circut switching to packet switching. Telecom carriers are starting to budget investment dollars for this upgrade and it is going to be very big...and great for companies that have the best packet switching products. Sonus is one of them and is a pure play in VoIP !! |
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| AUTHOR:
yho |
RANK:
Top Quartile |
DATE:
Aug 28, 2003 |
| PAST
RANK: |
I agree with ssteward's comment on Sonus Networks.
VOIP is the new form of communication where we go from here.
Nowadays, especially in Telecom sectors, things are moving so fast and companies are keeping their budget tight on revenues and keep cost in place, VOIP would be the ideal choice. This change won't take effect immediately, but it will sooner or later.
As for Alex's comment's, rumors did spread on a possibility of taking over Sonus Networks. Rumors did mention that Cisco will try to tender of Sonus at a price range of $5-$6 and this was 1 year+ ago. |
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| AUTHOR:
cthiessen1 |
RANK:
Top Quartile |
DATE:
Aug 28, 2003 |
| PAST
RANK: |
| Sonus is definitely a play on the future upgrade cycle of the voice networks. Armed with an impressive customer base of Baby Bells, as well as trials with AT&T, they are one of two or three companies that will benefit the most from the transition to VoIP. I am a believer in their story, and long term I think they are going to be a stellar growth engine. However, how much should we be willing to pay for that growth? At a $1.4 billion market cap, we are already shelling out 10X next year's best revenue estimate. |
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| AUTHOR:
sstewart1 |
RANK:
--- |
DATE:
Sep 05, 2003 |
| PAST
RANK: |
Yho...we are always on the $$ arent we!! Very good work in your fund! You raise the bar for all of us!! VoIP..good stuff!
Stewart |
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| AUTHOR:
yho |
RANK:
Top Quartile |
DATE:
Sep 06, 2003 |
| PAST
RANK: |
Thanks Sstewart.
Actually, I'm been watching both you and Wilmap's fund for quite some time now. You guys really kept your fund consistently from time to time.
Was wondering whether I can raise my fund's NAV to 40?
(A bit ambitious, that's all. :P)
Same goes to everyone in Marketocracy...
Good Luck ! |
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