Could Vonage be a buy?

Vonage Holdings Corp. (NYSE: VG), which has been found to have infringed on three Verizon patents, warned investors that its legal woes could push the company into bankruptcy. Investors are heading for the hills, sending the stock down 7%.

Could this be a buying opportunity? Successful investors often go against the grain. With all the negative sentiment surrounding the company, whose shares have plunged 80 percent since going public last year, there just may be value here.

This stock, though, isn't for everybody. Vonage's warnings, which is part of the 10-K that the company filed with the SEC yesterday, says that intellectual property litigation, especially our ongoing patent litigation with Verizon, if determined against us, could... lead to the bankruptcy or liquidation of the company."

With a current market cap of half a billion dollars and the potential of court-imposed limitations on its ability to add new customers, Vonage is about as contrarian of an investment as it gets. And while I consider myself a contrarian, I definitely don't have the guts to touch this one.

But people make money in the stock market by buying low and selling high. For those who are game enough to buy Vonage's stock. I wish you the best of luck. You'll need it.