Trading Strategies

Posts: 6 · New Forum Member Joined: May 23, 2006 Posts: 6

First IPO here. Would like to hear what various people have in mind for selling/holding strategies. What past IPO's would you compare this with? I'm initially planning to sell half if the stock doubles and holding the remainder long term. As for downside plan, I don't know. Many IPOs drop before they take off so it may be a stomach-wrenching ride. I look forward to hearing what others' plans are.

Posts: 17 · Vonage Forum Associate Joined: May 22, 2006 Posts: 17

I am thinking along the same lines. I may hold a little bit more than half to start. I don't think this is a long term hold by any means, but I have to say, we may have to give it a few weeks. This one is up in the air. We will all just have to wait and see I guess!! I have a feeling that the firt day is going to be a non event to be honest. I think it may go up and down, but not much.

-Wes

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

Given all of the negative press and the general opinion that this company has no chance... I'm taking the risk. I'm holding my shares until the silent period is over and the company releases its next 10-Q. I have to believe that Mr. Citron and company have a plan to retaliate, which could mean a good run up.

Posts: 75 · Vonage Forum Senior Joined: Apr 26, 2006 Posts: 75

I'm ready to hold Vonage for the long term, but if there happens to be a big jump the first few days I'm going to take some profit. I think we will hear some interesting things out of Vonage in the coming weeks. They will be doing more with the IPO money than spending it all on advertising...

Posts: 17 · Vonage Forum Associate Joined: May 22, 2006 Posts: 17

Interesting thought about waiting till the next 10-Q. I think you may something with that.....may have to change the investing strategy a little.

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

I just want to give them a chance to prove the naysayers wrong. If we get positive news out of this 10-Q then I'm sure there will be a big run up, if not... well I'm prepared to lose some money and it will go towards my capital loss for the tax year.

Posts: 75 · Vonage Forum Senior Joined: Apr 26, 2006 Posts: 75

I don't think we'll see any trading below the IPO price in the coming weeks or even the first few months. An aquisition would be interesting, if not unlikely. I can't imagine that we'll the next 10-Q will have anything more than "we have more customers, we spent more on advertising, we have no profit". But that's OK with me, more customers now will eventually turn into profits.

Posts: 6 · New Forum Member Joined: May 23, 2006 Posts: 6

New strategy: considering the 25% allocations, I'm probably gonna hold all my shares long term. Then tomorrow after the open, if the stock dips before soaring, I'll pick up the remainder of the shares that I had wanted here...and possibly at a better price.

Posts: 75 · Vonage Forum Senior Joined: Apr 26, 2006 Posts: 75

I don't think there is any way you'll get any on the open market at $17. I agree with you allocation analysis, this is going to be hot. I thought VG would open tomorrow at $18 before I saw the allocation, but now I think it will open at $20 and be $30 by lunch time.

Posts: 18 · Vonage Forum Associate Joined: May 15, 2006 Posts: 18

1300 shares.

If the stock opens significantly higher than the offer (>25%), then I'm selling half.

I will then monitor the price and sell additional shares into any spike in price. I may wait until the second day if the stock is strong. Seems that IPOs have a 1-2 day run.

By the end of the second day, I will sell 80-90% of my shares and let the rest ride.

If the stock opens at or lower than the offering price, I will sell into any spike in price and be totally gone by the second day. IMO, A mediocre opening of an IPO would be a bad sign and a signal to get out.

Good luck,
jw