VRAZ_price_chart.jpgSuffering from a strong downtrend for more than three months and being the subject of shorters’ interest, Veraz Networks, Inc. (NASDAQ:VRAZ) stock rolled further down yesterday.

After a new 52-week low was hit this Tuesday, the downward direction of VRAZ stock continued with the next 5% price decline. But not the share price decline was the latest piece of news about the company.

During the trading session, the huge number of 423 thousand shares changed hands. The volume traded exceeded six times the three-month average for VRAZ stock.

This time, neither the announced this Monday not so impressive financials, nor the forthcoming acquisition of Dialogic were the main factor for VRAZ pull back. The rolling down of the share price resulted mainly from the strong shorters’ interest, which represented 58% of the total volume traded.

Usually, when volume consolidation occurs, at least a short term change of the price may be expected. As the chart here shows, VRAZ stock is in the oversold area since Friday. This does not mean necessarily that VRAZ will definitely improve that indicator, but is still a signal that the time of buyers may come soon.

VRAZ_from_the_site.pngIt looks like VRAZ is constantly declining since the company announced its plans to acquire all of the outstanding shares of Dialogic.[BANNER]

The company believes, that this acquisition will provide these three advantages:

  • The new entity will be a global company with a strong reputation in the fastest-growing telecom markets
  • It is expected, that the combined company will have over 3,000 customers that transcend both the service provider and enterprise markets
  • A strengthened product pipeline in the high growth segments of the mobile and enterprise markets.

The transaction is expected to be closed this October.

In connection with it, VRAZ already announced a special meeting of stockholders that will be held at the end of September. During the meeting, the adoption of the Acquisition Agreement with Dialogic and the reverse stock split of the issued and outstanding shares of Veraz’s common stock will be voted. Also an important issue to be voted is the change in the company’s name from “Veraz Networks, Inc.” to “Dialogic Inc.”