In selecting Vonage stock 8 months ago, I used an old reliable tactic.
I’d heard of it.
And it was under a buck at the time.
I bought at 94 cents, and it was under 50 cents not long ago.
It hit 2 dollars today, presumably because it released apps for the iPhone and Blackberry.
Almost a 40% increase in a day.
The other reason I liked this stock is their commercials, like the shark one below.
And as usual, after a large increase the stock has given back about half its gains.
I suspect this is due to high volume traders and short term investors. People are making their money and getting out.
Then they get back in to do the same thing over again.
Increase the capital gains tax rate and perhaps the market would be less volatile.