Call $10 "just a number," but there's something to be said for the potential hit investor psychology once a stock originally priced at $17 a share goes down to single digits.
I know this because back in the boom years, I bought a fair pile of stock at $72 a share in a company I was very enthusiastic about- and now the same company is trading around $5 or $6.
But as to Vonage, well, I saw the $10 barrier in my sights two weeks ago. Back on May 31 (exactly two weeks ago from yesterday's trading) I wrote:
Because those investors more affected by uncertainty have already attempted to bail, I sense that Vonage share prices aren't going to tumble all that much more for awhile. Given Vonage's subscriber base, expenses, and potential, I sense a gradual inching down toward around $10 a share. That will probably take a couple of weeks.
Yes, I saw it coming.
I think the next psychological barrier will be $8.50 a share. That would be half the IPO price. How many more shareholder lawsuits will we see if/when the $8.50 line is breached?