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Technology Stocks : SONS
SONS 7.830+2.8%Nov 28 4:00 PM EST
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To: carranza2 who wrote (1299)12/20/2007 9:27:20 PM
From: akmike   of 1575
 
Whether or not there is a recession (I believe there will be) capex for telecom will come down. The spend for circuit switch technology slides every quarter and yet still dwarfs the amount being spent on packet switching. However, just the BT deployment could surpass over the next two years the entire revenues Sonus has reported for the last two years. Many of the carriers will accelerate deployments because of the operating cost savings and revenue enhancing opportunities.

As Sonus has come to dominate packet switch, and more and more carriers are just commencing deployment, Sonus should do very well for several years no matter what economic backdrop they are experiencing.

As they have achieved market leading positions in North Americe, Europe, and Japan, they will be a prime beneficiary of a weaker dollar.

It is very likely that Sonus' growth will rapidly accelerate commencing with Q4 of this year.

While they won't receive as high a multiple as they could in a healthier market/economy, they should perform quite nicely on an absolute as well as relative basis. If the recession is long-lived, then Sonus will be able to acquire other companies on the cheap to fill in their product offerings.

Then they will enjoy success on an even greater level when the market turns around.

Merry Christmas and a Prosperous, Happy 2008 to all.

Mike
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