Sorry for my late reply, I know the article has aged…but I’m sure you will agree still very relevant. If we see the value of Vonage only as revenue, then indeed you’re correct. However telecoms spend around $250-300 per new subscriber account, at least this is what I read. But if the figure is correct, Vonage subscribers (2.5M as of 09-01-2009) are worth between 625 and 750 million dollars to potential buyers (very conservative estimate). Now that is only cost of new telecom subscribers; what if potential buyers like TW and Comcast can covert Vonage subscribers to bundle accounts that cost $120+ per month? Easy to see we’re talking big, big, big money. Of course the trick for Vonage is to hold on to existing accounts and show decent growth numbers. I believe Vonage is trying to make itself as pretty as possible for potential buyers; 3rd quarter report will tell us whether Vonage is pretty enough. That is how I see Vonage.

Now, if readers can afford the risk, couple things to keep in mind; as of Sept. 9. 2009 VG share price is $1.35, Vonage Holdings Corp.3Q Earnings Release is scheduled for 11/02/2009 * 18:00ET Q3 2009. Notice the time; 2 hours after closing of normal market hours and 2 hours before closing of extended trading hours. If the news is good for Vonage then extended hours trading will take all the gains before normal hour trading starts.

Just for the record, I own shares in Vonage, and my investment is only rolling the dice for chance to make big money. To all readers, please do not let my opinion influence you into taking risks you cannot afford.

Regards, John Debba