Vonage (VG) the dog!
I wont' waste too much time analyzing Vonage (VG) as it is not worth the time. In short, Vonage is bleeding in red ink and is trading between 6-7 bucks per share . They went public at $17/share and has been going down since. This was about 3 months ago. Vonage is spending huge amount of money advertising as you might have seen their commercials. The customer acquistion cost is very high. However, the margin is quite low. For Vonage to make money, they'll need to acquire a lot more customers. Meanwhile, Voice over IP (VOIP) such as Skype is giving their services away for free (limited time offer). Vonage will likely run out of capital and probably get acquired if they are lucky. I just don't see how this company can become profitable in the near term. If you feel the need to waste your money, go to Las Vegas for the weekend and spend it there instead. You'll at least get some satisfaction from losing your money.
