Institutions use dollar cost averaging strategy to aquire shares which means they can buy twice as many at $1.6.This is the best strategy that takes advantage of time factor with profitable companies that are in transitional period.I do not know how long it will take for small business to become core revenue generated part of VG but it will not happen overnight so long term view has to be applied. It is logical to expect institutional ownership to go up while shorts work on share price to become more attractive for institutional investors.
It is collaborative effort.
Good luck to all good but unconscious people.
Why don't you short it.Possible it is fraud,only crooks know it.Sure it's a gamble but this is not the first or last gamble i'm taking.
Shane has material stake in it,revenue is exploding and cash position stable.Technical intermediate pps correction is over.
Buy out next year is my assumption.
EGHT's revenue per share makes VG "overvalued" in comparison.My best guess is that VG share price is in intermediate bear trend and soon after growth anticipation factor desolves we should expect pps to test $1.6 sometime next year.
Good luck to all good and unconscious people
Doesn't matter since share price is in technical bear untill next fundamental catalyst pops up.Dgroves is comparing apples and market looks at oranges.
When you play at casino do you blame casino owners for taking your money or yourself.Stock market is the greatest casino in the world and you're suppose to supply money.I mean in long run you and others are created to support the market by having THIS addiction so don't fool yourself.
You are the reason why stock market exist.
This is very high beta coef. stock so any disappinting news can afect share price dramatically especially if manipulation factor is significant part of price fluctuation.
In my ho lowered guidance is behind today's action as pps gets lower trying to find supply/demand balance.
On the other hand cash position is not eroding.
You need to see YoY consistent revenue growth over 10% in order for revenue antcipation factor turn in to revenue growth factor.Short of that no new highs above $5.4.Plenty of time for shorts to pressure current share price trend down untill permabears give up or hibernate.
Still "overvalued" at P/E over 40.
"a rumor drives it up"
You got this upside down. It's not a rumor behind stock jump it is the stock going up creating rumor.
One more, there is no such a thing as "loser stock" but there are plenty of loser shareholders.
Never say never.Stock market is based on contradictions.Year from now YOU could be $50 or bancrupt.Most likely somwhere between.Small caps are very sensitive to systemic risk.
I anticipate US broad market correction next year and Chinese market is in secular bear trend.
Image is everything, especially in stock market investing/speculation where there is no one single metric that determines about success or failure. Great majority of public companies are solid business and yet their stocks underperform broad indexes in long run but individuals can make the difference.
Lefar has not been able to resurrect Vonage's image with the public which is directly related to inability to grow customer base and his departure is logical step.
Glad to hear positive assessment and I hope that new CEO understands that confidence and humility can have very happy marriage for benefit of all.
Because as a 20-25% grower EGHT belongs to stocks with shares priced for perfection but this is changing now. EGHT has already corrected 50% and likely another 25% next year.
The only time VG has been able to keep up with EGHT was during pure technical indiscriminate buying spree of 2009-2010 when both went to mid $5.Since then VG has been riding on "growth anticipation" factor. It is no secret VG is unable to grab residential market share from anybody.Somebody once said that Lefar's greatest strength was to pull companies form brink of bankruptcy. I credit him also for injecting "growth anticipation" in to share price. Without it Vonage share price would have difficulty raising above book value.
As long as there are unsuccessful attempts to find consistent growth path pps is total hostage of market forces and I do not see any good reason for it to move outside the "trap" of cash per share on low end a and book value on high end.
We are cool.I apologize for using offensive terms.It will not happen again.
I have to admit of gradually becoming too negative and treating him too harshly lately. There is no question he knows what market wants to see from "stuck in mud" company. Clearly Vonage has been going through transformation from residential service provider in to small business where growth could be found. Like morph said if you can't grow your core business you have to buy growth. I call it growth anticipation factor which may be strong enough to keep pps from forming double or triple bottom.
As always time will tell but I believe share price upside is limited for next 6-8months as long as residential is as usual. Consistently flat revenues and high P/E ratio give shorts plenty of time to make VG even more "undervalued".
The million $ question at this point is the direction of intermediate share price trend but I'm afraid we are in EGHT and CALL camp again which is lower highs and lows.