Volume Dark Horse: Astea (ATEA)

Astea International Inc. (Nasdaq: ATEA) may not exactly be a household name but the price surge and volume spike alone should have traders, speculators, and small-cap investors busy today and well into next week.  The company is a “provider of service lifecycle management and mobility solutions” and it is up big after earnings. 

For its December 31, 2010 quarter, Astea reported a 27% gain in revenues to $7.1 million and next income rose more than 200% to $1.2 million or $0.34 EPS.

Software license revenues of $2.6 million were 58% higher than the same period in 2009.  Service and maintenance revenues were $4.5 million compared to $4.0 million for the same period in 2009. 

Astea noted that it has expanded its market opportunity and global presence and claimed to be more optimistic about the economic environment for the service management market space than it has been in past quarters.  It further noted an increased momentum in new customer acquisitions and accelerated growth in its pipeline.

In less than 25 minutes we have shares up a whopping 85% at $7.40 on more than 700,000 shares.  This one hit a new 52-week high of $7.64 today and even after this pop the company’s market cap is a mere $26.6 million.  Stay tuned.

JON C. OGG

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Websense Volume Spike Alert: M&A Rumor (WBSN)

Websense, Inc. (NASDAQ: WBSN) just saw a major volume spike on WSJ reports that the company is now exploring a sale.  The online monitoring and security company saw shares pop on major volume.

At 1:47 PM EST we have shares up 9.5% at $22.37 on more than 1.77 million shares versus an average daily volume of about 420,000 shares.

Its 52-week trading range is $17.03 to $27.96 and the market cap here is north of $910 million.  Thomson Reuters has estimates of $1.51 EPS and $363.35 million in revenues for 2011.

As with all M&A news leaks, these should be considered rumor until there is proof of a deal in the works.

JON C. OGG

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Sonus Ready for Major Volume Spike (SONS)

Sonus Networks, Inc. (NASDAQ: SONS) rose handily last night and this morning we have shares higher with a pre-market volume spike.  The news was that the infrastructure equipment and software maker for wireline and wireless telephone service providers crushed earnings estimates.  Last night in teh after-hours session we saw shares up almost 30% at $3.92 on more than 2.5 million shares after the 4PM close.

This morning as early as 7:40 AM EST we have shares up around $3.80 on more than 30,000 shares.  The average volume here is about 2.6 million shares.  The 52-week trading range is $2.12 to $3.75, so today is likely to also mark a 52-week high.

The takeaway from last night and this morning is a simple one.  Look for an exponential volume move today.  The low share price will attract many new investors looking for that extra juice from low-priced stocks.  The magnitude of the beat is going to likely drive very active stock trading today for what was a market cap of $837 million.

JON C. OGG

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