Sonic Foundry Shares Boom

Shares of Sonic Foundry surged 63 percent Tuesday after C.E. Unterberg initiated coverage of the Company with a "strong buy."

Sonic Foundry (Nasdaq: SOFO) makes software that allows users to manipulate digital content, such as songs or videos. C.E. Unterberg wasn't immediately available for details on its coverage.

The stock gained 15 to 40. More than five times as many shares traded as typically change hands.

Even happier are clients at H.C. Wainwright, which picked up the Company two weeks ago when the stock was still in the mid-teens.

Despite the run, H.C. Wainwright's Jason Ader sees the stock heading higher. "It's just getting started," Ader said. "It's only getting into the neighborhood where it should have been."

"I look at (Sonic Foundry) a little like Macromedia," Ader said. Macromedia (MACR) makes software that allows people to create and tweak video material for the Web, while Sonic Foundry primarily allows users to get music and other sounds online.

Sonic Foundry trades about 7 times its sales over the past 12 months, compared to about 19 times for Macromedia. Shares of San Francisco-based Macromedia have doubled over the past three months.