Acme Packet, Inc. (APKT)

SPECULATIVE-HAS RECENTLY BOTTOMED OUT. NEW TO STOCK MARKET AND DOWN FROM HIGHS POST ISSUE. SALES LUMPY--AT COMPANY EST 1ST QUTR--NOT ANALYSTS. IS PROFITABLE COMPANY, EXPERIENCED. HAS PROPRIETARY BOX-2 SUPPLIERS (I JUST ADDED TO ENSURE SOURCING) SOFTWARE HAS PATENTS, HEAVY ON RESEARCH/VERSATILITY, EX-USA MARKETPLACE TOO, NO APPARENT COMPETITORS WITH MOXY TO CATCH OR REPLACE THEM IN NEAR FUTURE, RAPPORT WITH CLIENTS. GOOD REPORTS FROM TECHNICIANS ON DEPLOYMENT IN A GROWING OPPORTUNITY MARKET NICHE.

Improving margins. A great potential customer base. With the dip in the price, this appears to be an opportunity to get in at the start of a company with a good future.

They have covered the immediate (2007) market. Major carriers deploying IMS-NGN networks already have SBCs, sales will drop until sale cycle for tier-2 carriers kicks in.

small cap, secure networking technology company, worldwide market, favorable valuation for PEG, P/B,P/E...P/S is unfavorable now....rev growth is better than industry average...eps growth has been negative for mrq and ttm.....speculative technology investment now....

voip workhorse

With the current P/E of 24 this stock is probably valued fairly given the current market demand for VOIP equipment. GIven the current condition of the ecomoy and the market it is probably a little over valued. I could see this stocks P/E as low as 17 which would put it just over $5. However, I think I up side is a P/E of 40 which would put the stock at $12. This gives a great risk reward.

APKT is currently the best play on VOIP growth.

screened with these parameters...
The previous day's closing price must be less than $9.95 a share.
The previous day's close must be above $2, a floor that reduces risk.
The previous quarter's average daily trading volume must be at least 40,000 shares, to weed out dead or rarely traded stocks.
A return on invested capital of at least 10%, to isolate companies with profits sufficient to support growth or reward shareholders.
A price-to-sales ratio of 8 or less.
Year-on-year revenue growth of at least 12% over the past 12 months.
Revenue growth in the previous quarter must be at least 75% of the growth rate for the previous 12 months.
Forecast earnings-per-share growth over five years of at least 15%.
At least 30% of outstanding shares must be held by Institutional investors.
Mean recommendation by analysts of "hold," "buy" or "strong buy."
No company with a negative earnings surprise in its recent past.

Cramer Pitch

Market leader in an emerging market. Established relationships with large customers and distributors provide an unusually large moat for such a young company.

I always liked this company, too bad I didn't act on it sooner.

These guys are being bid by every vendor in major telelcom deals. There's no doubt their product is needed, and they have no strong competition out there. In a year or so these guys will be an acquisition target for the big guys.

long term potential big gainer

dominant position in the field with tons of intellectual property

FAIR

spec

Short positions are currently at over 2M on this stock. Lockout was up at beginning of April but blackout covers through 2nd week of May due to earnings call. Buyback time will come after blackout is up ~5/6 or 5/7...I expect price in Jan 08 to be at at least 19/share...from the current 13/share thats a 45% gain with long term cap gains tax just a couple months away if you can make it that long...not to shabby...this is a story on the shorts that I bet alot of people don't want to become known before the blackout period is over.

This company has good numbers - good growth in earnings and revenue. They have no debt and about 23% of their market cap is backed by cash. They are the market leader for Session Border Controllers, which provide security for inter-network communications via VoiP (or at least that's my understanding) - a popular and growing method for conferencing and telecommunications. They had a great quarteer, and they don't sell directly to consumers.

50% of agrowing buisness but will have to out run cisco and sonus have to keep r and d cooking