Bon Voyonage

Last year I wrote about Vonage‘s (VG) impending IPO:

The offering is oversubscribed. But the price of voice-over-Internet protocol (VoIP) is plunging. And so will Vonage’s share price.

I was right. In ten months, the shares are down about 80%. As an experienced market professional, I know how to judge a company’s future profit potential. For example, if the company says that it may never be profitable, that’s usually a good sign. Meaning, a bad sign. Either way, that’s about the only thing Vonage has gotten right.
Now the company has been slapped with an injuction. It’s barred from using a patented technology from Verizon (VZ). One Wall Street firm just put a $1 target price on the shares. Why so optimistic?

Posted by Eddy Elfenbein on March 23rd, 2007 at 2:11 pm

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