As I read the press this week from Vonage
As we've all heard, a judge set up an injunction barring Vonage from using intellectual property that has been found to have infringed on patents held by Verizon
News flash, folks. Vonage can't even get any love from its IPO underwriters, like Citigroup
Well, actually, the good time to get out was long ago. Better to never have gotten in in the first place, as I told investors on numerous occasions. This bonehead outfit's idea of a business plan is simple: burn as much money as possible in a sector with zero barriers to entry.
Looking at the numbers, I say Vonage is dead, even if the patent issue gets cleared up. And there's the moral of the story. Investing in a money-burning biz run by a guy with a questionable history is a great way to lose your shirt. Vonage shareholders will be playing "skins" for a while.
Comments? Bring them here.
At the time of publication, Seth Jayson had no positions in any companies mentioned in this article. See his latest blog commentary here. View his stock holdings and Fool profile here. The Fool has a disclosure policy.