Vonage is a buy

Discussion in 'Stocks' started by hajimow, Sep 3, 2009.

  1. hajimow


    1-The stock was ignored for a long time and was 0.5 for a while.
    2- They just announced free international call to 60 countries
    3- They have been profitable for 2 consec. quarters
    4- Their subscribtion rate has gone wild because of the recent free international call plan and Bestbuy has run out their router in some stores and Walmart is also out of stock
    5- Volume has increased 700% in the last week
    6- Over 50% of shares are hold by insiders
    7- CEO just bought one million more shares 9/3/09) at $1.43 as buy and hold

    8- There is a high chance that Vonage might get bought
    9-Apple just approved an app on Iphone for Vonage

    Personally I believe VG will break out of its current price range and we should see VG over $3 soon.
  2. kaciara


    missed, but watching
  3. I'm hoping your right. It make sense in so many ways, but I've lost money on what appeared to be good situations. I'm hanging in there trying not to cave and bail.
  4. hajimow


    Now volume is high and VG is hanging at $1.49. Today it is flat in this up market and the reason is that it is not pumped by anyone yet. Soon things will change. Like in a week. I have heard that Sprint might be interested to buy VG for a share swap which will take it to $3.6. Now it is all speculation but based on good basis. Now all Indians, Chinese, Easter Europeans, canadian, Mexicans,.... are signing up for free international call. Nowhere else have an offer even close to that. Calling cards are getting out of business.
    Their subscrition is doubling from 2.5 to 5 in just 3 months.
  5. akeserla


    agreed.. jumped on vonage since me and my wife have families in India/Russia. I am able to save around 100$ a month by moving my service to vonage, I jumped on it even before the stock moved. I failed to do the same on the stock, got in a little too late. Holding on to it though
  6. hajimow


    The base is there. I mean good news and explosive increase in subscription. Now here is my theory:
    VG has less than 250M market cap and it has over 52% insider holdings and less than 50% are institutional and retail investors which makes it about 120M market cap shares floating. It makes it easy for few hedge funds or even one hedge fund to to build up some shares (like 30 million) which I blieve is happening now and then in just one day they will sweep all the bids up to $3. They don't need to do this alone. When there is a gap up, moo moo crowds and short covering will jump in and take it higher. Then even at $3 if they sell their shares, it won't drop and it will even go higher. They can not do this with monster stocks like CSCO or INTC or AAPL.

    My point is that don't expect small incremental changes to the stock. Just wait for a surprise. Specially when the hedge funds see that the other stocks are stalled and are not tradeable, they will come after VG and push it higher and then the stock will discontinue itself from its valuation. Then you can not use math to find the right price and a target price for VG. It will just keep going up like crazy. If it hits $4, we might might as well see $9 in a week for no reason.
  7. cstfx


    And before you know it, it will be back to it's IPO price of $17 and everyone is made whole again!

    Careful with this stock - it's a sucker play manipulated by the old boys network leftover from the First Jersey/Robert Brennan days. Jeff Citron was just their puppet.
  8. zdreg


    please compare vonage to skype.

    monthly pricing seems very much in favor of skype.
  9. hajimow


    I have Vonage and I know how it works and how much it costs. it is $20 per month for unlimited calls to 60 countries with lost of features like voicemail, caller ID, 3 way calling,....... $20 is if you pay a full year in advance and you can get 2 months free if someone intrudces you {I can do that if anyone is interested and I will also get 2 months free. Just send me a private message}
    I have never used Skype and I don't know how much it costs. I know that skype to skpe is free which is not a big deal. It is like Yahoo messenger or MSN messengers which are also free but I know SKYPE to landline or cell phones are not free. I will also try to find out the price of calling 5000 minutes to a cell phone in China or India using Skype. Please let me know if you have that info.
    Please let me know if I have a laptop and leave it at work and I have no PC at home or whether Skype will work at midnight when I have no PC on or not?
  10. hajimow


    Here are the prices for calling to India and China or even Iraq for 5000 minutes. I named Iraq because lots of contractors or soldiers family are there.

    India : 5000x$0.106 per min=$530 per month !!!
    China: 5000x$0.024per min=$120 per month !!!
    Iraq: 5000 x $0.428 per min=$2140 per month !!!
    Indonesia: 5000 x $0.106=$530 per month !!!

    Vonage: $20 per month flat if you pay one year in advance and $24.99 if you pay monthly.

    I still want to know whether I can still use Skype if for some reason I don't have a PC at home or my PC is not on. If I have to have a PC on all the time, add the cost electricity of a PC running 24 hours. What if it goes down to hibernate mode?
    #10     Sep 5, 2009