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Buying Vonage Ahead Of Earnings Could Prove To Be A Smart Move

|Includes: Vonage Holdings Corp. (VG)

Earnings Data Trend Analysis Vonage (NYSE:VG) Provides voice and messaging services over broadband networks to residential, small office, and home office customers primarily in the United States, Canada, and the United Kingdom. Current stock price $2.44 Earnings Due 02/13/13
Note: Calculations on prior earnings data along with analyst expectations, new accounts, share buyback program and cost savings on mobile plans result in earnings likely arrive at $0.10 beating the current estimate of $0.06. Anticipated total revenue to beat estimate of $206M and come in above 212.5M. Based on fundamentals and prospects suggest Vonage is undervalued by 39%. Watch for the stock to trade upward of $2.75 this week after the earnings report. The current analyst stock price target on Vonage is $4 per share.

Share Repurchase Program
Executing on its share repurchase program announced in August, Vonage repurchased 4 million shares of its common stock for $9 million during the quarter. As of October 30, 2012, Vonage had repurchased a total of 6 million shares of its common stock for $14 million, leaving the Company with $36 million available under its current share repurchase authorization.

The current chart shows the stock price topped out at $2.64 within the last 10 trading days and has bottomed out at $2.43. The 5 day by hourly chart shows a bullish new trend started on Friday Feb. 8th 2013 at the market close. Use a MACD indicator with a slow stochastic indicator. Watch for a rebound and retest of the $2.64 level and a breakout testing $2.75 and possibly $3 after earnings this week. The stock price could see a rally ahead of the earnings.

Disclosure: A person or persons must decide on their own when investing capital in the stock market.

Disclosure: I am long VG.

Additional disclosure: I plan on buying ahead of earnings