Sonus Networks, Inc. (NASDAQ: SONS) Flies High On Improved Shareholder Communication

SONS.gifSonus Networks Inc. (NASDAQ:SONS) has lost a bit of its volatility since the beginning of March. Vice President Mohammed Shanableh has announced a plan for insider stock trading and has filed the annual financial results with the SEC. The stock still stays up at $2,65, though a slight decline from yesterday is noticed.

In the second of its two latest filings with the SEC from March 5, Sonus Networks gives detailed information about insider stock trades. About ten days before that, the company filed its financial statements for the last year, along with other detailed and current data about its business activity. This information disclosure seems to have been perceived as a sign of improved communication and investor relations, since the stock retained the higher price.[BANNER]

Sonus Networks operates in the fast-growth communications sector and provides network transformation technology through a broad portfolio of services enabling fixed, mobile and cable networking. Although the reported net loss is significantly lower in 2009 and Sonus has a remarkable amount of cash, no investing activity can be seen over the past year and thus it is difficult to identify any potential for further rise of the stock price.

At least the news of insider trades and the stock options received by several employees in February seem to have stabilized the market price of the company. Giving stock options is often used as a method of stimulating management performance, though based on historical data, the stock should continue to be considered highly speculative and risky.

Read this article:

Filed Under: Press Releases


About the Author:

RSSComments (172)

Trackback URL

Comments are closed.