Anyone thinking about stiffing the underwriters?

Posts: 8 · New Forum Member Joined: May 24, 2006 Posts: 8

Karma my friend, that is why you do not stiff anyone. I don't understand why you Vonage nay sayers bought the stock in the first place. If you all hold onto your hats, maby everyone will see results. You do realize how this works? If everyone panics, and sells, the stock price goes down... One can only hope for patience. This is a great Co. with a bright future!

Posts: 5 · New Forum Member Joined: May 22, 2006 Posts: 5

dconnor wrote:

tfunk wrote:

dconnor, how does it feel to be down a few grand?

I have been buying more every hour. Smile

Really? Gutsy move. If you don't mind my asking, how much do you own now? And at what weighted average price?

Posts: 2252 · Posted: Wed May 24, 2006 2:39 pm Post subject:

apc131 wrote:

dconnor wrote:

tfunk wrote:

dconnor, how does it feel to be down a few grand?

I have been buying more every hour. Smile

Really? Gutsy move. If you don't mind my asking, how much do you own now? And at what weighted average price?

I do mind you asking how much I own, but the weighted average is in the 14.90+/- range.

Posts: 11 · Vonage Forum Associate Joined: May 20, 2006 Posts: 11

Whether or not VG can eventually trade back to 17 is a long discussion, this response is to ckurdna about how the underwriters did not screw up. They certainly did. You have to understand how the investment banking process works. Its not about trying to get the most for the share price at all. While of course is on the list of importance, its maybe 17 out of 19.

This looks terrible for the underwriters and they -will- lose deals in the future because of this, guaranteed. My guess is this is why the bigger boys, Morgan Stanley, Goldman Sachs, etc were not in on this deal. You want the stock to increase in value on day 1, even if its only .50, anything but down. A down IPO rarely happens for a reason, the underwriters price shares below what they -should- be priced at. They clearly did not do this for VG, or guessed completely wrong about how little interest there would be in it.

Am I upset because I lost money, of course. But its the market, if you never lose money, you're doing something wrong. I am upset on how badly this was run by the underwriters.

-Mark

Posts: 4 · New Forum Member Joined: May 23, 2006 Posts: 4

lesson learned, never go in on an ipo with the underwriters of the Vonage ipo.

Posts: 1 · New Forum Member Joined: May 24, 2006 Posts: 1

Wasn't this thread about stiffing the underwriters and possible repercussions?
I am an honest person and anyone who stiffs the underwriters is a slime ball, but I predict that this situation will become a model case illustrating why the average Joe should not participate in an IPO. It will be a perfect example of why brokers require a brokerage account with a minimum deposit. I think there will be plenty of people out there that will wait until the underwriters get serious and even send it to collections before they pay. The fact of the matter is, a collection agency has to wait 60 days after contacting you before they can ding your credit, during that time they will typically offer a 25% discount on the balance. I am curious to see what happens.

Posts: 80 · Vonage Forum Senior Joined: May 24, 2006 Posts: 80

jimikim wrote:

They clearly screwed up. This thing should have been priced at 15. Anyone thinking about not paying for this dog? Discuss possible repercussions.

I feel sorry for everyone who lost money today. However, I would not say the underwriters screwed up, as they got the IPO fully subscribed, and got the company the money it needed. I do not think not paying would be a good idea - loosing money hurts, but it hurts more not to be able to look yourself in the mirror in the morning.

It is too early to judge the stock after one day of trading though. I would not be surprised to see an up day tomorrow, although I personally feel the stock might go lower over time.

Posts: 1 · New Forum Member Joined: May 24, 2006 Posts: 1

I participated in the customer share allocation and IPO today – and lost my shorts. I have not sold my shares but I am getting anxious. I called my broker and asked him what would happen if I failed on the trade - he said I should just sell and cut my losses if it gets to that.

I thought there was a reasonable chance that the stock would be decent and that the bankers would have priced the offering correctly. My bad for taking the risk and believing that the offering had a chance – but it is Vonage’s and the underwriters bad for handling the pricing of the offering so poorly.

I can’t help but think that the results of the customer share purchase offer is going to be hard for a lot of other Vonage customers to swallow and that Vonage is going to have a pretty big PR mess to address.