3 small cap buys for September

While the Dow Jones gave up almost -5% in August, Acme Packet Inc. (APKT) moved decidedly in the other direction with a +20% gain. The communication company’s CEO recently discusses his company’s plans for the future, including a big push into Voice Over Internet Protocol (VOIP) to replace conventional phone networks. This move towards software and applications that exist above the IP-level rather than on physical routers will give Acme an edge over competitors like Cisco (CSCO) and Juniper (JNPR).

Radcom Ltd. (RDCM) is an Israeli tech powerhouse that posted strong quarterly earnings last month. The test equipment and software company is benefiting from strong investor interest in the Israeli tech sector, one of the largest and fastest-growing in the world. The company recently announced that a leading Voice over Internet Protocol (VoIP) operator purchased its Next Generation Networks Service Assurance solution. The VoIP operator boasts a few million subscribers and will use Radcom’s solution to monitor customer experiences on its networks. The stock is up against a 52-week high, but has potential to move even higher.