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I bought Vonage (VG) at the beginning of the year (as documented on my personal blog - Jan. 3 2007, paid $6.65 - now $5.85) expecting the shares were the victim of tax loss selling and that I'd see a big snap back as soon as those who bought the stock at the IPO for $17, sold to recognize tax losses and offset gains. While sellers may have been hitting Vonage, it would seem no such snap back was anywhere to be found. I'm still holding while I try to get a better handle on the company. They have a business that operates at a positive cash flow once they acquire a customer. It's that customer acquisition that's killing them.

Here's the link to an interesting blog by Eric Savitz of Barrons on Vonage.

Disclosures and Confessions: I own Vonage (VG) as a short-term speculative holding. I also have Vonage phone service. At first I found it unreliable, now I find it very useful. I like getting my phone messages as emails and being able to use my phone number from anywhere I have an internet connection. In the long run, Vonage has too much competition. Their best hope is to be bought by a huge company with distribution but very few customers.

VG 1-yr chart:

VG 1-yr chart

Source: Year-End Vonage Bounce Trade Gone Awry