Acme Packet Shares Soared: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Acme Packet (Nasdaq: APKT  ) surged more than 22% on more than double the average volume in early trading after Deutsche Bank said its checks showed the company winning big deals that could yield substantial upside in Q4. The stock closed up 19%.

So what: The report appears to confirm earlier comments from CEO Andy Ory about a large deal shifting into the fourth quarter from the third. Most seem to believe the customer in question is AT&T (NYSE: T  ) .

Now what: At the time, Ory described the deal as "very large" and controlled by "one of the two largest service providers in North America," meaning either Ma Bell or Verizon (NYSE: VZ  ) . So be it. Whoever writes the check -- if Deutsche Bank is right -- this is precisely the news investors have been waiting for. Do you agree? Would you buy shares at current prices? Please weigh in using the comments box below.

Interested in more information about Acme Packet? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of Acme Packet. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On October 28, 2011, at 5:07 PM, LDtheP wrote:

    Buy Acme Packet....heck yes. We are a very small company buying their SBC Session Border Controllers. As the world goes IP, and SIP, everyone will need a SBC to control the traffic and Acme is the Market leader.

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