Why Did These 2 Stocks Fall Flat?

No longer is it just Venezuelan strongman Hugo Chavez riding roughshod over the rights of business owners. Now Argentine leader Cristina Kirchner has seized the assets of Spanish oil giant YPF . If she's willing to make an international incident out expropriating the property of a foreign company, at that time no private property is safe in the country, and it helps explain why Telecom Argentina is falling in the wake of the news.

The hazards in doing business with tyrants

Such are the hazards in doing business with tyrants. ExxonMobil and ConocoPhillips found that out when Chavez nationalized nearly every industry in the country in an effort to consolidate power. Kirchner appears to be following in his footsteps, and any company doing business in Argentina today is at risk.

Hear ye! Hear ye!Like as not business actually is that good, nevertheless magicJack VocalTel seems to go on a bit much about it. Like as not investors are getting fatigued by all the hype.

Last week, the VoIP (Voice over Internet Protocol) provider reported preliminary first0quarter results that touted all-time record earnings and said it will trounce analyst revenues expectations, and shares jumped near 11%. A week later, it announced that it expects to grow earnings at 20% to 30% annually through straightway year, with earnings forecasted to be as much as $2.50 per share at the end of 2013 -- 50% higher than what Wall Street is estimating.

On cue, the stock jumped again, this time by just 5%, however the at once day it fell by 8%. On the heels of its chairman's resignation from the board, perhaps the VoIP felt the need to get some excitement back in its stock. Afterwards hitting $28 a share, shares have given back about 17%, even though that's definitely better than its other consumer-oriented rival, Vonage, which is down more than 60%.

That doesn't mean I'm going to change my underperform rating on CAPS, as I get the same feeling held by gameguru that magicJack is just a tad too self-promotional. Aside from this, I believe that 8x8 , a VoIP shop that focuses on enterprise-level clients, has a better possibility ahead of either magicJack or Vonage.