This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Five Dumbest Things on Wall Street This Week

1. How Do You Spell 'Stupid?' V-O-N-A-G-E

Vonage (VG) is getting one ringing endorsement after another.

Shares in the Internet-phone-service provider have dropped 42% since their May 24 initial public offering amid customer complaints and investor apathy. In response, the Holmdel, N.J., company is turning on the public relations charm.

"Vonage Named Best VoIP Service of 2006 by PC World," reads the headline on one recent press statement. "Vonage Receives Effie for Advertising Effectiveness," says another.

Vonage certainly isn't taking home any trophies for communicating with Wall Street. Late last Thursday, the company said the Federal Trade Commission (FTC) had closed its investigation of Vonage's 911 disclosures and compliance.

That might have qualified as good news -- except that it wasn't true. "Vonage has not ... received a closure letter from the FTC," Vonage explained in a correction notice after the market closed Friday. "Until the Company receives such letter, the FTC's inquiry into this matter remains open."

It's hard to know what Vonage was thinking by jumping the gun on the FTC. Luckily, the company explains its strategy in the Effie award release.

"Vonage's 'People Do Stupid Things' marketing campaign, which highlights some dumb things that people do, turned out to be a very intelligent brand direction for us," CEO Mike Snyder says. "It educated consumers on the new VoIP category, while urging consumers not to be stupid when selecting their phone service."

Don't worry, consumers. Vonage has the "being stupid" part covered.

Dumb-o-Meter score: 93. Great brand direction, guys.

To view Colin Barr's video take on Vonage's entry in Five Dumbest this week, click here .

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs