Vonage, Actually Making Another Presentation (VG)

Vonage Holdings Corporation (VG-NYSE) has disclosed that the company’s CFO, John Rego, will be speaking in New York City at the Bear Stearns 2007 Technology/Communications/Internet Conference on Monday, June 11, 2007 at 2:15 PM ET.  The company tends to make a press release for almost any event out there, but frankly it is a bit surprising that the company is willing to present any data at all outside of its quarterly earnings conference calls.  This is just after a prior presentation at a Deutsche Bank Media and Telecommunications Conference yesterday (link here), which had no real impact on the stock.

It is embroiled in a court case with Verizon (VZ-NYSE) that has the potential of sinking it, but this is still probably far from over.  It also now has to contribute to an FCC fund that supports service for schools, libraries and rural and low-income households.

The two groups of questions that would be interesting to see how they are answered are as follows:

1) If you plan to stay independent and assuming you lose the Verizon case in most points, how high do you expect to raise rates to survive as a business? 

2) If you are deemed a doomed financial operation but still an attractive operating company for a larger telco operator (like Verizon), then why doesn’t the company perhaps try to see what the value would be to the larger carrier?  Would there be any value for shareholders under that scenario, or would be a near-bankruptcy buy that wipes out shareholders?

The good news is that this does not appear to be in a dire spot for the immediate future, but the bad news is that the unknowns are still piling up and the company has a long difficult road ahead of it.

Jon C. Ogg
June 6, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.