Via iamamazing.wordpress.com:
No I am not writing about Vonage as a value stock but instead it is an obvious and blatant value trap. Today Todd Weiss of Computer World writes
April 12, 2007 (Computerworld) — With much of Vonage Holdings Corp.’s future already clouded by a losing fight in a recent patent infringement case that threatens its business, Michael F. Snyder, CEO of the broadband telephone service provider, resigned, effective yesterday.
In an announcement this morning, the company said that Snyder “stepped down” and was replaced by Vonage Chairman Jeffrey A. Citron, who will act as interim CEO.
The move came as part of a broad restructuring also announced by the company as it tries to stem its operating losses. The company had a net loss of $286 million in 2006, compared with a net loss of $261 million in 2005. Revenue for 2006 was $607 million, compared with 2005 revenue of $269 million.
Today the future of Vonage is clouded is an understatement. The future of Vongage is not really there as I don’t see them having much of a future. Ever since they stole patent technology from Verizon, Vongage has been banned from signing on new customers. Originally the judge was thinking about making Vonage go away but instead he let them die a slow and painful death. No wonder the founder of Vongage resigned, I would to if my company was dying and there was no way of getting around it. Poor Vonage — Stealing is bad!
$3.21 (04/13/07)
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