The mild speculation on World Plan sales and the AARP deal is not enough to keep VG at this nosebleed level. Over $2.14 is nosebleed levels where Vonage is concerned. I see Vonage headed down 35% in the next six months in anticipation of Vonage bleeding more next Christmas. Earnings this year will show a decaying customer interest in Vonage, cancellations, and losses to competitors. Net profits will be puny if any.
Fat chance Vonage adds 10,000 more customers this quarter than it had last quarter.
Watch for any special announcements to see the next slight of hand from management, e.g. what Vonage plans to do to show Vonage is alive and growing, not just fighting for survival against Magic Jack, Skype, Calling Cards, and 10 cable companies.
PR is routinely someone selling insider shares or leaving. At least the conference call wont mention insider sales.
10 day average daily trading volume twice the 3 moth and pps is moving higher,above all support levels.I would only be supprised not shocked if $2.4 gap holds.Broad market is not ready for significant correction yet.
If, in the quarter about to be announced, Vonage adds 25,000 net new customers paying an average of at least 29 dollars each month,(on top of those sales which offset the massive churn), then many of Vonage's vocal detractors would get quite bullish. There is no free pass for Vonage. The returns need to be tangible and not just revenues. The net profit is what matters.
Smoke and mirrors, fancy lingo, name dropping and sounding confident is no replacement for subscriber growth.
Vonage is a white turnip from which present longs seek to extract red beet juice. If a tiny droplet emerges, some desperate investors deceive themselves that the one medicine drop foretells an ocean of returns. The desperation of some from having waited so long for sluggish, non-performing Vonage enables a suspension of disbelief that reminds me of the gambler who places twice as much money on lucky 7. The market knows better though. The market handsomely affirms Vonage at the current valuation though the drop is just that, nothing more.
If anything, given Vonage's managerial ineptitude, controversial past, competitive headwinds, and low regard among many investors, the Street actually interprets each drop as less than it is, not more. That wont change because Vonage comes with plenty of what the Street calls hair.
Technically, it's worse than dead money. Factor in the opportunity cost of your VG investment and you are losing money. Hundreds of other sub $5 stocks are at their highs, some paying dividends as well. This is a lost opportunity, more so than just dead money.
A Vonage investment today sits more than 50% below it's high less than 24 months ago. It's performance has been horrible compared to the overall market.
Way to go Mr. Lefar, the fat cat who made out like a bandit just 24 hours after wooing no one except Sheila at the Citi conference.