What the Heck Is Up With Micro-Cap Telecom Stocks?

So, I’ve been writing a lot the last few days about the stunning run-up in shares of Vonage (VG).

But it isn’t just Vonage. A whole bunch of micro-cap telecom stocks are on a tear for reasons that so far are not entirely clear to me. Consider this list:

• NextWave (WAVE) today rose $1.02, or 242 percent–242 percent!–to $1.44, on volume of 26.5 million shares. Average volume: 768,000 shares. The stock actually started to run up earlier in the week. Three-day run: 324 percent.
• FiberTower (FTWR) today rose 10 cents, or 17 percent, to 69 cents, on 5.6 million shares. Average volume: 887,000 shares. Three-day move: 53 percent.
• Fairpoint Communications (FRP) today rose 15 cents, or 32.6 percent, to 61 cents, on 9.6 million shares. Average volume: 1.5 million shares, The stock is up another 21 cents, or 34 percent, after hours, for a total move today alone of 78 percent.

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