Tempted to do stop payment...

Posts: 6 · New Forum Member Joined: May 12, 2005 Posts: 6

Here's my story (much like yours, I am sure). Please comment...

Requsted 600 shares, got 200. My intention was to sell if the stock went below 16.50. Was never able to open UBS online account, which was the only way to set up orders, etc. Called UBS 8 or 9 times all day Monday May 22 and a couple of couple of times on Tuesday May 23 and kept getting the same answer from all reps: "Give it an hour and try again".

After exploding on the last call, UBS finally let me set up orders via telephone on May 23. This was AFTER trading had begun and the damn stock had lost more than $2. Since my plan was no longer possible, I requested to sell at $12, still thinking that it was not fair that I had to incurr such a loss because the damn online service did not work for me.

Anyway, I went to the local UBS office on Friday to pay for my shares. Today I find out there is possibility that the shares will be bought back or that the IPO will be canceled. Should I put a stop payment on the check I made to UBS??? I don't want to get into legal trouble, but the thought of losing $1000 unnecessarily is just too much...

Even though i knew the risks, I still feel like I am being cheated on. Also, I never thought this could happen, but I am starting to feel like I should not be a Vonage customer any longer.

Any comments?

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

I feel the same way... do I stop payment so that I can be included in this group of buy backs, or do I hold on and see if the IPO will be canceled.

So many unanswered questions that Vonage is going to have to answer really soon.

Posts: 476 · Posted: Tue May 30, 2006 3:25 pm Post subject:

gfoulks wrote:

I feel the same way... do I stop payment so that I can be included in this group of buy backs, or do I hold on and see if the IPO will be canceled.

So many unanswered questions that Vonage is going to have to answer really soon.

Dropping a bomb like that buy back announcement and then not responding to media requests seems like a really, really bad PR decision. It's like the left hand doesn't know what the right hand is doing.

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

I stopped payment on my check about an hour ago.

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

Makes you think that they have to be getting ready to announce something.....

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

silkworm wrote:

Should I put a stop payment on the check I made to UBS??? I don't want to get into legal trouble, but the thought of losing $1000 unnecessarily is just too much...

You did the right thing - those who refuse to pay for shares they ordered are NOT doing the right thing.

If Vonage decides to bail out those NOT doing the right thing, I do not see how they have any other choice than to bail out those who did the right thing as well.

Obviously the loss hurts, but you are able to look yourself in the mirror and know you did the right thing - I think that counts for more than money.

IF Vonage should decide to buy back shares, that should be seen as a gift, as Vonage did not really do anything wrong here IMHO...

Posts: 1 · New Forum Member Joined: May 30, 2006 Posts: 1

I lost money in the Vonage IPO. I am in the securities business and a lawyer. I am a Vonage customer, and I am not affiliated with Vonage in any way. This statement is not legal advice intended for anyone, but only constitutes my personal thoughts on how the Vonage IPO will impact me personally. I knew the risks of this deal and I lost. Except for things like online trading problems which don't apply to my situation, the fact that the IPO went down at the open is just part of the game I decided to play. IPOs are known to be risky and are only intended for investors that sign papers (electronically or otherwise) indicating they understand and consent to the risks. I signed those papers online. As for Vonage buying back shares, I just don't see that happening in my case. It seems to me that such would constitute uneven treatment for some shareholders unless all shareholders that lost out in the deal were bought out similarly. I think it opens Vonage up to too much liability. Although many feel harmed or cheated, I believe I took part in what is most likely a fair transaction that ended up going bad due to unfavorable market conditions and concerns about Vonage's fundamentals in a questionable industry. That said, Vonage could offer additional Voip incentives to customers like me as a way to say sorry, but I am not holding my breath for some kind of stock buy back in my case. Also, as a licensed securities practitioner and member of the bar, I plan to honor my contractural obligations pending some kind of official announcement. I say this because breaching a contract could have serious negative implications for me personally. I expect no such buy back in my individual case. Again, this statement is not legal advice intended for any specific person, but is only a reflection of my individual situation as an investor. Please seek counsel from your own lawyer and/or accountant if you have legal or accounting questions regarding Vonage matters.

Posts: 2 · New Forum Member Joined: May 30, 2006 Posts: 2

Quote:

Vonage should decide to buy back shares, that should be seen as a gift, as Vonage did not really do anything wrong here IMHO

Well, yes and no. It seems pretty obvious to me that the price for the IPO was put together poorly, and that can undermine confidence in the investment bankers, who presumably want to do this again for more companies, and of course, the management of Vonage for accepting the advice of the investment bankers in the first place.

Perhaps the IPO should have gone out at $12? Imagine how satisfied everyone would have been - an appropriately priced IPO reflecting the market's value of the company. Exactly what the bankers are supposed to achieve.

I'm sure there are a number of sweating bankers out there right now who helped price this IPO...Other IPO's have occured this week with a more accurate pricing assessment and their price has at least remained stable. This makes the Vonage bankers look bad.

The extra complication: formerly happy customer evangelists who justifiably feel they have been part of a badly put together stock offering. I'm one of them, and I still like the service (and have said so on television!) and think Vonage has a future. However, I'm now concerned about their business acumen and the acumen of their advisors.

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

Here, Here! Maybe they should have stuck with the original $8 pricing? Eek

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

I am no lawyer, but everyone, you need to realize that sending a check and stopping payment on it can be interpreted differently than simply not paying. Stop payments on checks can (depending on the state laws) be interpreted as "intent to defraud", and in some cases may be pursued criminally as well as civilly.

Especially those of you putting stop payments on your checks just because the stock tanked, and you heard a rumor that Vonage might cover your debt. That really starts to sound dangerously close to "intent to defraud" when those are the reasons you are stopping payment on the check, IMO.

Not saying it would happen, but my advice:

1.) Seriously consider the ramifications of placing a stop payment on your check, and

2.) Really, it makes no logical sense if you do such a thing to go blabbling about it online.