Vonage stock highest in seven weeks: what's going on?

Yesterday, Vonage stock closed at $7.54 a share. And they are up to $7.61 early this morning.

Not only is yesterda's final trading price a rise of 6.50% over Monday's levels, but it is the highest closing price for Vonage shares in seven weeks.

That would be $7.67 on July 7 (all together now, where did the summer go)?

Levity aside, it is fair to ask two questions.

What's going on here? Is Vonage stock over the rough patch, and are they starting to turn a corner?

Will the rise in Vonage stock affect the more than 15 class action lawsuits filed by attorneys representing Vonage shareholders po'd that their $17 a share pre-IPO purchases now have less than half their value?

The answer to both questions is no.  

Vonage may be over one rough patch, but the longer-term problems about competing with hard-charging, multiple-play cable and telco VoIP offerings and far less expensive softphone telephony services remain.

And as impressive as recent stock price gains are, they aren't quite enough to satisfy hungry suitors and their enabling attorneys. $10 a share might make things different, but it is doubtful VG will see $8 a share.

So what do we attribute the stock price rise to?

This may be a case where Vonage stock has found its price level given current conditions. The per-share price rises may just be occuring within that envelope.

The real questions are, how long will this price range envelope last, and can Vonage bust through it to start creeping closer to, say, $10 a share to give at least a ray of hope anxious investors who still feel somewhat jilted? 

Right now, I'd say the envelope holds for several weeks, and $10 is out of reach-barring serious acqusition negotiations and word leaking out in, say, the WSJ.