Arbinet Insider Buying, Income and Equity Down

Arbinet, (ARBX), is a leading provider of innovative voice and IP solutions for buying and selling telecommunications capacity. They route for its Members approximately 2% of the world's international voice traffic to 1,300+ destinations worldwide. Arbinet's membership base includes approximately 75% of the world's 40 largest international carriers and 8 of the world's prepaid service providers. Members own 70+ mobile networks and 75+ broadband networks (arbinet.com).

They provide a variety of services to its members. Below is a visual view of their MarketAxcess and Assured Axcess products.




It's basically a minutes exchange, trading like any other commodity w/ supply/demand factors. I've been watching this since the IPO and unfortunately it's down around 90%. Looking at their annual data, revenues and earnings have been declining since 2006. Revenues ending December 31, 2008 are down 14% from December 31, 2006 (466.848M from 542.979M) . Losses are also up 38 fold (-14.9M from .39M) and Shareholders Equity is down 38% during the same period (49.59M from 80.39M). So what the hell is going on here? Here are some articles. DIDX is one of their competitors.

Arbinet Increases Presence in Latin America (Reuters)
DIDX Looks to Foster Emerging Opportunities -TMCnet,
Demand for Video Capacity Trumps Voice Call (NJBiz)
Arbinet Bows Hong Kong IP Exchange (LightReading)

Now for the interesting part. There's an insider (Karen Singer) who owns 4.5 million shares or 20.2% and has been scooping this up for years now. Not only that, this trust has been buying Evolving Systems and LiveWire Mobile (10%+ Owner) as of this month (Insider Trades/Yahoo Finance) and the companies are related. So Wtf is going on here, will this company eventually be in play? Something to watch.



KS Insider Buys Snapshot via Scottrade