Cramer Recommends Sonus Networks As A Speculative Play (SONS)
Tonight on Mad Money, Cramer recommended Sonus Networks (NASDAQ: SONS) as a speculative play on the VoIP infrastructure segment. He said that the company has 10 years of experience helping customers migrate over to modern IP networks. Sonus (SONS) customers include AT&T (NYSE: T), Verizon (NYSE: VZ), Level 3 Communications (NASDAQ: LVLT) and Global Crossing (NASDAQ: GLBC). Although Cramer emphasized that this is a very speculative stock, with a market cap of only $703.08 million, he said that SONS cost structure is much improved and this could offer upside going forward.
Sonus (SONS) reported better than expected revenue and earnings numbers last quarter, handily beating Street estimates. Unfortunately, the firm also lowered their 2010 guidance. Even taking the disappointing guidance into account, Cramer believes that this stock offers significant upside and limited downside. The company currently has $1.53 per share in cash on its balance sheet, and Cramer believes that this offers some protection with regard to the share price. The shares are currently trading at $2.56 after losing 3.03% today.
