Worst ipo since 2004

Posts: 13 · Vonage Forum Associate Joined: May 23, 2006 Posts: 13

azranch wrote:

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.

Technically, is Vonage a telco stock or is it just a tech stock? Traditional teleco's offer a divided, therefore they have a yield in addition to the value of the shares. As such, historically, the are considered value stocks. (transportation historically was considered growth stocks)

Vonage, no yield, therefore traditional investors looking for high yielding telco's would stay away from Vonage.

I think home gamers some of whom might not have limited experience in investing have a much lower appetite for risk than say other types of investors.

To each their own! Good luck to everyone regardless of their investment strategy.

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

LDTalk wrote:

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

Look what happened today Smile

Vonage up almost 3% on a day Dow finished down almost 200 points.

Posts: 13 · Vonage Forum Associate Joined: Oct 18, 2005 Posts: 13

ldtalk,

i think you have to put it in perspective -- Vonage was down 29.5% from its ipo price of $17.00 at the end of trading on friday (6/2). at the end of the day today (monday, 6/5) it is down 27.5% from the ipo price.

lots of things can go up in the short-term -- junk bonds, emerging markets, reits, etc. -- that doesn't mean that said investment will be good long-term. btw, i'm not trying to bash any of the 3 investments i mentioned above -- i've had exposure to 2 of the 3 in the last 5 years.

Posts: 16 · Vonage Forum Associate Joined: May 31, 2006 Posts: 16

VG is starting to act like a "real" stock now. They won't recover from the initial backlash from a too high IPO. I still stand by my prdiction of $8.50 by end July. As the cable companies get out there and local CLECs continue to shoot themselves in the foot with pricing, 3rd party services such as Vonage and Skype will struggle as a POTS-like service.

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

WillyD wrote:

ldtalk,

i think you have to put it in perspective -- Vonage was down 29.5% from its ipo price of $17.00 at the end of trading on friday (6/2). at the end of the day today (monday, 6/5) it is down 27.5% from the ipo price.

lots of things can go up in the short-term -- junk bonds, emerging markets, reits, etc. -- that doesn't mean that said investment will be good long-term. btw, i'm not trying to bash any of the 3 investments i mentioned above -- i've had exposure to 2 of the 3 in the last 5 years.

I know Willy!
I still feel Vonage is overpriced, even after this fall...

I was merely bringing up my old, half jokingly, comment that Vonage would probably go up if we got a really red day in the general markets, which happens to be exactly what happened yesterday.