Stocks quoted in this article:
Sonus Networks (SONS – 107-5/8) provides voice infrastructure products. The security is trading over 14 points, or more than 11 percent, lower this morning ahead of the company's three-for-one stock split. This split will occur after today's close.
With this retreat, the shares have dipped to their worst intraday mark since June 19. Since notching an all-time intraday high on August 8, SONS has stepped back by greater than 61 percent under the pressure of its 10-day and 20-day moving averages.
Despite the equity's recent woes, short interest on this laggard retreated by over 15 percent to just 860,292 shares. From our contrarian stance, we view this decreased skepticism as a potential bearish omen given the security's underperformance.