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 (NAS: 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 (NYS: 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 (NYS: 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.
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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of Acme Packet. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.