I predicted it to the day: Vonage stock now set to dip below $10 a share

 Update: Vonage stock closed Thursday at $9.82- first time under $10 a share.
Written by Russell Shaw, Contributor

Update: Vonage stock closed Thursday at $9.82- first time under $10 a share. The link in the next graf dynamically changes from day to day, and will show you today's chart.

Yesterday Vonage's stock closed at $10.14 a share, down 76 cents from Tuesday's $10.90 a share at the bell.

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? 

Editorial standards