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Will Vonage Become a Penny Stock?
That thud you heard today wasn't the sound of the Vonage stock price falling -- it was the sound of Vonage investors hitting their heads against the wall as more bad news send the stock plummeting. At this rate, Vonage is headed headed toward becoming a penny stock.
Today's news is that Vonage is being sued by Verizon for patent infringement. Verizon claims Vonage infringes on seven different VoIP patents.
That's in addition to a previous patent infringement suit related to VoIP filed last year by a subsidiary of Sprint-Nextel Corp.
And that's not counting all the lawsuits filed in wake of the disastrous IPO over irregularities about how the IPO was handled.
The stock fell another 11.67% yesterday. It was at $8.48, less than half of the $17 price it fetched at the IPO.
Don't feel sorry for those who bought it at $17; this offering smelled from the beginning. In fact, the company prospectus itself admitted that Vonage may never make a profit.
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