Wednesday, August 22, 2007

Trade Update - Acme Packet (APKT)

Yesterday, I submitted a new buy recommedation to subscribers of the website I write for, The company is called Acme Packet (ACME). And the chart above shows where the stock stood as of yesterday's close.

The problem is that today, the stock ramped +9.25% on a huge volume spike. But I don't think my readers had time to get in. At this point, I would probably prefer to wait for a pullback as opposed to chasing the stock.

The company makes session border controls (SBCs), which is jibberish for cutting edge telecom equipment that helps make next-generation IP networks operate more seamlessly. It is still a small company, but they have great products and leading market share in this emerging space.

The stock has pulled back siginifcantly from its highs at the end of 2006. And it has only been public since last October. But I think the stock is on the mend, and has already seen its lows. The company reported a solid quarter recently, and management gave bullish guidance about their outlook.

Today's big rise on surging volume validates my thesis, at least in the near-term, but I still think there is more room for upside.

long APKT


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