Body Basics Inc (ZCBD)

[plfminthemiddle]

from motley fool they picked on GTE today they ran a report on IPO VG (Vonage)As the company continues to burn great wads of cash, investors have only management's promises that better days are ahead. Sure, subscriber count is growing. But unprofitable is unprofitable, no matter how many users are signed up. Just ask the folks in satellite radio.

But at least serial losers like XM Satellite Radio (Nasdaq: XMSR) and Sirius Satellite Radio (Nasdaq: SIRI) have a guaranteed duopoly. VoIP telephony is a business with no moat whatsoever.

Even blimp-floating pretenders like GlobeTel can make claims to this market. How much tougher will it be for Vonage to actually achieve profits -- crazy concept, I know -- in the face of real competition from the likes of AT&T (NYSE: T), Verizon (NYSE: VZ), or Comcast? And slow-moving telcos aren't the only ones in the space. Expanding Internet chat from Google (Nasdaq: GOOG), eBay (Nasdaq: EBAY), Yahoo!, or anyone else could take Vonage's margins down toward zilch.