I'm long but have no expectations of a good reaction even to excellent news. When the markets are tanking, good news is like a whisper in a windstorm.
I'll be more like to buy your scenario if VG drifts higher into the 11th and the news. But even that would be scary as I've seen stocks do that and then get HAMMERED even on good earnings news more times than not. The 11th is setting up as a MAX-PAIN event for somebody, longs or shorts. I hate holding thru earnings.
I love the free cash flow. I'm long in part because of it. But I also trade technically. VG's 50-day is getting ready to cross below it's 200-, and that is never good thing. There's still 8 days until Earnings. I've seen the Flatline before many times going into Earnings. But rarely for 2 weeks. I'm hoping that VG pops $5.16 and takes the news at $5.60 to support the Averages and keep the Death Cross from happening. But it might be hard to do with the Market down triple-digits almost every day.
I hear you and makes sense all things being equal. But overall market sentiment counts for a lot.
Major market retracements to say nothing of Bear markets don't look too kindly on 45 PE's. They tend to spank them.
I think the best thing that could happen for VG is QE4. They announce THAT, I love VG getting to
double-digits by year end.
I get the action of the last few weeks. Whatever longs say about Vonage vs. competitors the market disagrees and sold this stock off. I don't care what a co.'s earnings/growth are. Liquidation is indisputable just as Accumulation is.
Reasons don't concern me. Volume and price action does. So I get the last 3 weeks.
This morning is confusing the hell out of me though. 1M shares in the first hour. And basically flat. Feel like they're either holding it down or suckering buyers in.
VG's biggest problem right now, is it's chart. It's ugly. Needs to get back above the 40-week line at $5.57 pronto and keep that 50-day from crossing underneath the 200. They don't call it the Death Cross for nothing.
Have a feeling this will take the earnings right around $5.50/$5.60. It'll be MAX PAIN for either longs or shorts on the news.
'Oversold' depends on Market overall too you know. When Indexes are experiencing massive revaluations, no individual stock is oversold. I'm long VG. But I don't know if the Indexes bounce off their Supports hold here, or they don't.
At this point I won't be surprised to see it go under $4.73. If not to close, at least to print those prices.
This chart now needs a high-volume flush-out candle to print before it can even retrace 1/2 it's losses.
This stock is now going to need a FLUSH OUT Candle with a long tail. You can't buy it when it keeps closing at the lows, regardless of the support lines or gaps filled. The Indexes are rolling over like they're dead in the water.
You see the Indexes rolling over? No single stock stands up to Market-wide corrections.