Worst ipo since 2004

Posts: 73 · Posted: Thu May 25, 2006 12:00 pm Post subject:

azranch wrote:

You still don't get it. When you go to Vegas, you know the odds are stacked against you (how else would the casinos make fortunes?) When I purchased Vonage stock at the offering, I wasn't looking for a home run, just a decent investment. I haven't sold, but clearly the underwriters totally blew it in every sense, from pricing to the inability of people to sell, to the high brokerage commissions etc.

As I said in another thread, if you aren't willing/able to lose all the money you invest in the stock market, then you shouldn't be investing in the stock market in the first place. If you can afford to see the $1700.00 worth of stock you bought drop $400 to $1300 ish, then you shouldn't have bought any stock in the first place.

Posts: 135 · Posted: Thu May 25, 2006 1:30 pm Post subject:

I remember when I first heard about the IPO and the offer to customers to get in on the IPO I was a bit disappointed. I became a customer on Dec 24, 2005 so I just missed the Dec 15 cut-off. I was only upset about being excluded for a few minutes. The thought of getting in at the beginning sounded cool and exciting (who knew how exciting it would be!).

As much as I like Vonage (as a service) I just could not think of agreeing to purchase shares at the IPO price before the market had a chance to weigh in. For a company still losing money the way Vonage is that would just be too risky. All of the signs were there. I feel for those who have lost a lot of money... but when you are investing in IPOs you have to expect to loose your shirt once in a while.

Posts: 476 · Posted: Thu May 25, 2006 1:41 pm Post subject:

mharvey wrote:

I remember when I first heard about the IPO and the offer to customers to get in on the IPO I was a bit disappointed. I became a customer on Dec 24, 2005 so I just missed the Dec 15 cut-off. I was only upset about being excluded for a few minutes. The thought of getting in at the beginning sounded cool and exciting (who knew how exciting it would be!).

As much as I like Vonage (as a service) I just could not think of agreeing to purchase shares at the IPO price before the market had a chance to weigh in. For a company still losing money the way Vonage is that would just be too risky. All of the signs were there. I feel for those who have lost a lot of money... but when you are investing in IPOs you have to expect to loose your shirt once in a while.

Agreed. I became a customer on December 14th so I was eligible, but chose not to participate in the DSP. Everyone poo-pooed the doom and gloom in the prospectus, but the fact is that Vonage hasn't posted anything except net losses in every quarter. I'm not sure who was expected to be buying up a bunch of shares over the IPO price when there's no outlook for profitability.

Posts: 8 · New Forum Member Joined: May 23, 2006 Posts: 8

I truly wonder what's going to happen to this stock on a negative market day - any thoughts?

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

jwjones wrote:

I truly wonder what's going to happen to this stock on a negative market day - any thoughts?

It will probably go up Smile

Posts: 8 · New Forum Member Joined: May 23, 2006 Posts: 8

Thanks for the laugh - here we are back in the 12s.

Posts: 14 · Vonage Forum Associate Joined: May 23, 2006 Posts: 14

Looks even worse with the Mastercard ipo up over 6 points as I type. You can not blame market conditions now, just horrible pricing.

Posts: 2 · New Forum Member Joined: May 21, 2006 Posts: 2

asked for 2500 got 700 @17. Sold 700@ 12.85. Big enough loss for me to say Sianora!!!

I have 5 business lines with Vonage and now they are no longer.
Although it was a risk gettting in this IPO, I believe they screwed us !!

Moo MOO Moo MOO moo

Posts: 476 · Posted: Thu May 25, 2006 2:35 pm Post subject:

MarketWatch story

Quote:

Telecoms mostly gain, but not Vonage
By Jeffry Bartash, MarketWatch
Last Update: 3:11 PM ET May 25, 2006

WASHINGTON (MarketWatch) -- Telecommunications stocks gained ground on Thursday, repeating a recent pattern of up-and-down trading. Juniper Networks Inc. and Level 3 Communications Inc. led the way, while Vonage Holdings Corp. fell again.

In late Thursday action, the broad-based Nasdaq Telecommunications Index was up 0.8% at 205 points.

Juniper (JNPR) was among the top performers, adding 4% in value to $15.14.

In the phone sector, Level 3 (LVLT) was the top gainer, climbing 4% to $5.06, as most industry stocks advanced.

Embarq (EQ) , spun off last week by Sprint Nextel Corp. (S) as an independent company, steadied itself after a series of declines. The stock was up 0.4%.

Internet-phone Vonage (VG) fell sharply again in the wake of its initial public offering two days ago.

Shares sank more than 12% to $13.03. The company had gone public at $17 a share, but some analysts say Vonage lacks the size, money or a technological advantage to beat out larger competitors in the long run.

Posts: 4 · New Forum Member Joined: May 24, 2006 Posts: 4

holocron wrote:

azranch wrote:

You still don't get it. When you go to Vegas, you know the odds are stacked against you (how else would the casinos make fortunes?) When I purchased Vonage stock at the offering, I wasn't looking for a home run, just a decent investment. I haven't sold, but clearly the underwriters totally blew it in every sense, from pricing to the inability of people to sell, to the high brokerage commissions etc.

As I said in another thread, if you aren't willing/able to lose all the money you invest in the stock market, then you shouldn't be investing in the stock market in the first place. If you can afford to see the $1700.00 worth of stock you bought drop $400 to $1300 ish, then you shouldn't have bought any stock in the first place.

I can afford it, that's not the point. In an up market with other telecom stocks going up, VG drops 25% from the offering price. We relied on the underwriters to price it fairly. That doesn't mean it had to jump 25% on day one, but when it's the worst performing IPO in many years, you know something stinks.