Vonage Holdings Corp. (Public, NYSE:VG) is on short watch after a 400% move from yesterday’s open to after-hours trading today on no significant news. In the video I tell you just what I am looking for before I will sell it short. It is such a pretty supernova that nothing else seems worth watching tomorrow.
Disclosure: No positions. I have a disclosure policy.
#1 by Ryan Yates on August 25, 2009 - 8:36 pm
Quote
They had earnings today–this is not insignificant news. I would recommend playing both the long and short side. Market cap is still relatively small considering the scale of the company.
#2 by Reaper on August 25, 2009 - 8:40 pm
Quote
Where did you see earnings? They filed their most recent 10Q on August 6th. See EDGAR: http://www.sec.gov/cgi-bin/browse-edgar?sourceid=Mozilla-search&company=&CIK=vg&owner=include&action=getcompany
Furthermore, Barron’s tech blog reported the move and said they were aware of no real news (except for the new international calling plan): http://blogs.barrons.com/techtraderdaily/2009/08/25/vonage-rockets-to-165-one-day-gain-up-4x-in-6-days/
#3 by cwn6161 on August 25, 2009 - 9:13 pm
Quote
Sigh… Sogotrade why do you hate me? Good luck with the short tomorrow if it comes around.
#4 by stkonlinetrader on August 25, 2009 - 9:43 pm
Quote
VG is on fire, after hours action was crazier too, but it did sell-off after hitting 2.60+ to end at 2.17.
Will be interesting to see where it opens
#5 by Reaper on August 25, 2009 - 9:44 pm
Quote
150k shares shortable at IB on VG
#6 by stkonlinetrader on August 25, 2009 - 9:46 pm
Quote
Repear,
Dont you think this could run up more ? Fundamental news along with it.. ?
#7 by Reaper on August 25, 2009 - 9:48 pm
Quote
It could, although buying here would IMHO be too risky. That is why I wait for the fading price action to short.
#8 by Preston on August 25, 2009 - 9:51 pm
Quote
I am laughing my ass off, is that cup of coffee because of the first e-mail I sent? lol, and maybe to get through the second one.
Well I hope it waits another day because I have 10 hours of Exxon training tomorrow, I hope you kill it if it does come in play though.
Enjoyed the video.
#9 by Reaper on August 25, 2009 - 9:54 pm
Quote
ha! partly, Preston. Mostly me just trying to find the best way to do it.
#10 by sleepy on August 25, 2009 - 10:19 pm
Quote
great educating , investors live could learn a lot from your presentation, the clipped one liner seminars are not conducive to learning!
#11 by Robert on August 25, 2009 - 10:30 pm
Quote
I’m fairly new to this, but how do you determine when there is support lacking? I am trying to watch for red to green and vice versa, but I always feel I am too late. Could you explain this to me?
#12 by Reaper on August 26, 2009 - 8:34 am
Quote
Robert – your question cannot be quickly answered. I will address support/resistance in future posts / videos.
#13 by Reaper on August 26, 2009 - 8:35 am
Quote
IB has no more shares of VG.
#14 by t.pak on August 26, 2009 - 9:04 am
Quote
Yeah no shares here too!!
#15 by betheball on August 26, 2009 - 9:32 am
Quote
you get on board that spike reaper? 2.27 to 2.63 in a heartbeat
#16 by betheball on August 26, 2009 - 9:33 am
Quote
nice work amigo, too scary for me
#17 by Reaper on August 26, 2009 - 9:33 am
Quote
yup, btb
I was in and out VG 1k shares (only partially filled on a 2.3k order) from 2.288 to 2.575 +$287
#18 by Chris on August 26, 2009 - 9:46 am
Quote
In and out of VG 750 shares, 2.37 to 2.46, +$53
#19 by cwn6161 on August 26, 2009 - 9:59 am
Quote
Ah shoot, my name keeps changing back. I’ve switched from Chris to cwn6161 since I’ve seen another person on Tim’s site going by Chris and I get confused enough with people in real life
#20 by Reaper on August 26, 2009 - 10:09 am
Quote
VG trading weird, like rumors of a buyout or something, but of course that isn’t the case. You’d expect a stock with this much volatility to not just hang around between 2.30 and 2.40
#21 by betheball on August 26, 2009 - 10:36 am
Quote
y, its gone dead, kinda strange
#22 by cwn6161 on August 26, 2009 - 10:47 am
Quote
I was watching NYMX at 5.88, thinking “if it hits 6, I bet I could make some nice profit on it.” Well, I wish I had listened to myself, lol.
#23 by Reaper on August 26, 2009 - 11:25 am
Quote
looks like the play on VG will be tomorrow. I just don’t like this choppiness so no way am I gonna short on fading without it actually red on the day.
#24 by betheball on August 26, 2009 - 11:50 am
Quote
“so no way am I gonna short on fading without it actually red on the day.”
lol
#25 by betheball on August 26, 2009 - 11:51 am
Quote
you need timestamps on your posts here reaper
#26 by Reaper on August 26, 2009 - 12:17 pm
Quote
sorry, too hard btb. Unless you wanna donate $50 so I can find someone to do that for me.
#27 by Ryan yates on August 26, 2009 - 5:50 pm
Quote
Reaper, you’re right that the movement wasn’t based on earnings. My bad.
You should check out AIG to daytrade, as well. It’s terribly easy to buy it above key levels. Another benefit is the lower commissions relative to the position size, too.