link to squawkbox blog talking about buyback

Posts: 19 · Vonage Forum Associate Joined: May 22, 2006 Posts: 19

http://spaces.msn.com/squawkblog/

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

Thank you for posting the link.

It sure will be interesting to see if this information is in fact correct. If correct, I would expect a big mess, as it would make little sense to reward the "bad" customers who are looking to get out of a deal, while punishing the "good" customers who have already made good on their purchase.

No matter what Vonage may decide to do, it seems more and more clear that this IPO might have been a very bad move in terms of building or maintaining customer loyalty...

Posts: 1123 · Vonage Forum **MVM** Joined: May 26, 2005 Posts: 1123

"No matter what Vonage may decide to do, it seems more and more clear that this IPO might have been a very bad move in terms of building or maintaining customer loyalty.."

I'll agree with that. I didn't buy in to the IPO, but after watching all of the goings-on, I've been doing my own research into my cable company's Voip product. It would be cheaper now, as the bundles make it worthwhile. I have a bad feeling about the way this is headed for Vonage.....

Posts: 31 · Vonage Forum Junior Joined: May 21, 2006 Posts: 31

This makes NO sense! I paid for the shares I was allocated, and should not be punished for paying.

Also, how do you buy back shares from customers who already have sold at a loss? Do you make their account whole, by writing a check for the difference? What a nightmare that would be...

If they want to make it right to customers, they would need to grant stock options - that is the only way to make sure it is fair...

If you were a customer who got 500 shares, then you should be granted $17-$12.50 = $4.50 X 500 = $2250 worth of stock options.

Therefore, the right to buy 500 shares at $8....

Any other ideas?

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

btrader wrote:

This makes NO sense! I paid for the shares I was allocated, and should not be punished for paying.

Absolutely, and if they were to try doing this, I bet the lawsuits would not be far behind...

If Vonage should decide to bail out its customers turned investors, the easiest way would probably be to pay them the difference between the IPO price and the price obtained when selling the shares in the open market.

I still think that any kind of buyback is very unlikely though.

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

btrader wrote:

This makes NO sense! I paid for the shares I was allocated, and should not be punished for paying.

Also, how do you buy back shares from customers who already have sold at a loss? Do you make their account whole, by writing a check for the difference? What a nightmare that would be...

If they want to make it right to customers, they would need to grant stock options - that is the only way to make sure it is fair...

If you were a customer who got 500 shares, then you should be granted $17-$12.50 = $4.50 X 500 = $2250 worth of stock options.

Therefore, the right to buy 500 shares at $8....

Any other ideas?

If they decide to cancel the IPO then they could issue 2 different classes of stock.

For example, they would convert all the DSP shares from the IPO to a Class A stock. Then buyback these shares in order to refund the money to the customers.

If you've already sold, then they would subtract your proceeds from the sale and send you a check for the difference or add it to the cash already in your account.

A new Class B stock would be created for all those who bought after the IPO hit the market and the stock could continue trading.

It would be very messy but they can determine who bought what shares. All this is probably being discussed right now. At least I hope so.

They need to do something to benefit ALL customers not just those who are refusing to pay. There will be a class action suit if they do not take care of everyone. I paid for my shares and will join a class action suit if they decide to reward only those who did not pay.

jw

Posts: 11 · Vonage Forum Associate Joined: May 22, 2006 Posts: 11

jdubya wrote:

btrader wrote:

This makes NO sense! I paid for the shares I was allocated, and should not be punished for paying.

Also, how do you buy back shares from customers who already have sold at a loss? Do you make their account whole, by writing a check for the difference? What a nightmare that would be...

If they want to make it right to customers, they would need to grant stock options - that is the only way to make sure it is fair...

If you were a customer who got 500 shares, then you should be granted $17-$12.50 = $4.50 X 500 = $2250 worth of stock options.

Therefore, the right to buy 500 shares at $8....

Any other ideas?

If they decide to cancel the IPO then they could issue 2 different classes of stock.

For example, they would convert all the DSP shares from the IPO to a Class A stock. Then buyback these shares in order to refund the money to the customers.

If you've already sold, then they would subtract your proceeds from the sale and send you a check for the difference or add it to the cash already in your account.

A new Class B stock would be created for all those who bought after the IPO hit the market and the stock could continue trading.

It would be very messy but they can determine who bought what shares. All this is probably being discussed right now. At least I hope so.

They need to do something to benefit ALL customers not just those who are refusing to pay. There will be a class action suit if they do not take care of everyone. I paid for my shares and will join a class action suit if they decide to reward only those who did not pay.

jw

Sign me up too, you are right on the money.

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

They have painted themselves into the proverbial corner on this one. I think they are going to essentially backtrack across the board on a number of the early press release items and rethink their strategy.

Posts: 17 · Vonage Forum Associate Joined: May 31, 2006 Posts: 17

Vonage will surely pay a price for this mess. I want to defend Vonage and wants to put the responsibility on those who took the risk in buying the stocks but in this is just plain bad move for the company and God help Vonage.

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

nognog wrote:

<snip>... and God help Vonage.

God won't help - he uses wireless! (c;