Vonage (VG) the dog: Finally shedding its flees?
Wednesday, September 2, 2009 17:54
Was it the iPhone app? Traders have been baffled by the unusually high buying interest in VoIP phone call provider Vonage Holdings Corp (NYSE: VG). The stock has risen 500% in 2 weeks with little or no news to warrant such a move. Perhaps the most amazing thing was the volume: Nearly 40 million shares traded hands in a single day, the highest ever one-day turnover in the stock.
News hit the wires this morning which MAY explain the newfound demand for the stock – An iPhone app. Vonage “has announced that Apple approved its mobile application for iPhone and iPod Touch. Vonage is currently conducting a beta test and general availability will be announced at a later date.” All that for an iPhone app?
Vonage went public in late 2006. The $17 IPO was disastrous as investors saw their holdings plunge by 30% in the first 7 days of trading sparking a class action lawsuit against the company. Investors fared even worse in the following years as they watched the share price decline from $17 to $0.31 in July.
As of December 31, 2008, it had approximately 2.6 million subscriber lines in service.
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