wow, just reading the news http://finance.yahoo.com/news/Vonage-makes-free-apf-2148393408.html?x=0&.v=2 me spidey senses saying this goes to 5 easy! go VOIP!
Once I got that Vonage email on the free international calls, I said wow. I called them because you have to subscribe first for free and the ans machine said because of high call volume I have to wait for a long time and instructed to register online. This stock will fly. I just got some at 1.3. $5 is easy in a week. VG has the perfect customer service, excellent quality and now free international call to India and China and Mexico. Imgaine how many new subscribers it will get.
I am not sure the $5 is the number, but this is trading up big right now. There is certainly a short squeeze here!!!
How can a company going bankrupt with negative networh, earnings and cashflow get out of trouble giving stuff for free?
Your theory will remain to be seen. They are not giving stuff free. They are juicing up their offer. They are giving better deals compared to other VOIP companies including Comcast and Verizon. They have not even advertised their offer on TV. It was just email and their customer services is flooded with thousands of new customers.
Very strong performance. The run up has legs. I believe consolidation is going on now. Volume is over 35 million in an hour. We might see another runup by close.
I believe the current run up has two reasons: 1-This stock was beaten up and ignored for a while. Even with no news it deserved to be a $2 in this market. 2- The have been casl flow positive and profitable in the last two Q. 3- They just announced free international calls to almost anywhere in the world free with $24.99 monthly fee. Even now the company is worth 400 million. It will be so cheap for GOOG to buy it at 1-2 billion. Vonage has a successful brand name.