Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Investors got the call from Vonage
So what: There wasn't any news from the company, but we are seeing more than double the normal volume as Vonage continues the momentum we saw last week. When the company announced it added 6,000 customers in the most recent quarter, the stock began moving higher, and we are continuing that move today.
Now what: The trends are looking good for Vonage with churn rate falling to its lowest rate in four years and the number of customers increasing for the first quarterly gain in more than two years. Vonage sports a nice forward price/earnings ratio of 12.5 despite the sharp jump recently, and this momentum could continue as the week goes on. I would prefer to buy on a pullback, but at the rate this stock is going, who knows when that will happen.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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