VocalTech’s stocks have risen many-fold in the last few weeks despite the IP stocks are not really skyrocketing, the vonage deal notwithstanding. Though regarded the pioneer VoIP vendor, VocalTech hasn’t been doing that well as well despite outlasting many such VoIP companies. People have more or less forgotten about the company that serves a narrow band of (loyal) users.



So what is the reason for the current surge in its stocks? Jon Arnold in his blog asked for some reasons. He has reasons to feel that the market might be rigged though he didn’t mention that in so many words. I can feel your predicament Jon.



The answer, not surprisingly might lie in one of the comments on his post by someone called Readsalot_99 who says;


My guess for rapid movement of stock is two-fold:



1. few shares available for trading.



2. Not only is financing arranged, but maybe some deals to be announced soon. DT could be a buyer of product and Lucent could be the other buyer. VocalTec was in something like 17 trials for the Essentra product but couldn’t close the deals beacause of size, Lucent as a user/distributor doesn’t have problem with size. As was mention sometime ago TD felt business would come from DT after the merger.



Only opinions and speculations, but they sound right to me.

I agree to that really. But I have another reason for this that might sound interesting to a few. I dunno whether I am right on this, nonetheless I want to share it.



The other reason - Vonage! Why? Many are speculating that Vonage is getting all the funding as it could be bought up at a hefty price soon.



The other speculation is that bigger VoIP companies are thinking to acquire smaller VoIP concerns (so might include VocalTech, the undying old player).



VoIP has a great future, so the rise. I won’t be surprised to see other VoIP stocks rising. It happened to IT companies (and even old economy companies listed under ‘rogue’ catagory who declared that they were going ’software’) just before the dot com bubble burst.



With 11000+ players and so much hype, VoIP is also a bubble; it is going to burst soon. Only the mighty will remain. Rise in the VocalTech stocks are symptomatic of the inevitable.



For further details on VocalTech shares read Jon Arnold’s blog.