Quick Take: Wrong Direction for Vonage

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Don't miss Tom Gardner tonight on CNBC's "On the Money," airing at 7 p.m. ET. 

The market is insane, and here's your proof: The CEO of Vonage (NYSE: VG) quits the company and the stock moves up 10% on the news. The only way this would make any sense is if we could determine that Michael Snyder was the problem at Vonage.

He's not.

The problem is that Vonage is a money-torching business with a moat as profound as The Simple Life. And anyone out there who thinks shareholders are better off with head honcho Jeffrey Citron taking the reins on the day-to-day ops, well, I'd say they don't remember Citron.

The CEO's resignation today looks to me like an admission that this business is doomed to fail. This stock should be down 10%. Eventually, I expect it to move a lot closer to zero.

Comments? Bring them here.

At the time of publication, Seth Jayson had no positions in any company mentioned here. See his latest blog commentary here. View his stock holdings and Fool profile here. Fool rules are here.