Jeffrey Citron and CEO Snyder buy 100 shares of Vonage IPO

Posts: 30 · Vonage Forum Junior Joined: May 21, 2006 Posts: 30

So, you're telling me, the day the company goes public and I got these 200 lousy shares, I bought more shares than either Jeffrey Citron or the CEO of Vonage?

What the $%&#@ did they buy 100 shares for each? TO BE SYMBOLIC?!?

This smells more and more like we've been "had".

Butter-us up by saying we're being "rewarded" by getting access to buy IPO shares. Tell us that the purchases are oversubscribed. Then we commit, hook line and sinker, and what does the top brass at Vonage do? Buy a symbolic 100 shares each.

Yes, waaah, waaah, waaah. But when I lost thousands of $$$ after Exodus, @Home, and eToys were delisted, I took my hits without a word. However, this Vonage IPO walks, talks, and quacks like a pre-meditated scam. Jeffrey Citron and CEO Snyder paid a measly 100 shares for a ticket to this tragedy in which we played the starring role.

Quote:

Take chairman and chief strategist Jeffrey Citron, for example. He spent a whopping $1,700 (ed. 100 shares) on shares. Well, whoop-de-doo. He was already a 10% owner of the company before the offering. And that's in no small part due to a generous compensation package that granted him more than 40% of the options allocated to employees last year.

Oh, and he's also due to make at least $600,000 annually. That's $100K more than CEO Michael Snyder, who also picked up 100 shares for his portfolio.

http://www.fool.com/news/commentary/2006/commentary06053119.htm?source=eptyholnk303100&logvisit=y&npu=y

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

This is just not right. While a lot of people here are crying about their loses, those two guys are probably laughing thier way to the bank. If this is true then I just lost my last ounce of respect for this company. Darn I still can't get through to cancel my account.

Posts: 30 · Vonage Forum Junior Joined: May 21, 2006 Posts: 30

It's like an insult, isn't it?

I already got kicked in the ass. Now they just kicked me in the nuts.

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

If they both bought 100 shares, it was clearly a symbolic gesture, nothing to get upset by in my opinion.

Once the lockup period ends, I am sure we will see much more meaningful transactions from insiders, and those will likely not be buys...

Posts: 5 · New Forum Member Joined: May 08, 2006 Posts: 5

If you look at the SEC filings on the Vonage Investor Relations website, you will see that the 100 share purchase thing is true. It is also interesting that they have over 100,000 shares each available to them on option at a discounted rate. Citron can exercise his options at any time while the CEO has to divide it evenly over four years. SOunds like Citron got the better deal for himself.

Posts: 40

bigtuna wrote:

So, you're telling me, the day the company goes public and I got these 200 lousy shares, I bought more shares than either Jeffrey Citron or the CEO of Vonage?

What the $%&#@ did they buy 100 shares for each? TO BE SYMBOLIC?!?

This smells more and more like we've been "had".

Butter-us up by saying we're being "rewarded" by getting access to buy IPO shares. Tell us that the purchases are oversubscribed. Then we commit, hook line and sinker, and what does the top brass at Vonage do? Buy a symbolic 100 shares each.

Yes, waaah, waaah, waaah. But when I lost thousands of $$$ after Exodus, @Home, and eToys were delisted, I took my hits without a word. However, this Vonage IPO walks, talks, and quacks like a pre-meditated scam. Jeffrey Citron and CEO Snyder paid a measly 100 shares for a ticket to this tragedy in which we played the starring role.

Quote:

Take chairman and chief strategist Jeffrey Citron, for example. He spent a whopping $1,700 (ed. 100 shares) on shares. Well, whoop-de-doo. He was already a 10% owner of the company before the offering. And that's in no small part due to a generous compensation package that granted him more than 40% of the options allocated to employees last year.

Oh, and he's also due to make at least $600,000 annually. That's $100K more than CEO Michael Snyder, who also picked up 100 shares for his portfolio.

I'm starting to think that all of you complainers have never owned stock, read a prospectus, or even worked in a company that gave you options or stock. Those 100 shares ARE symbolic, he already owns 10% of the company which is probably all in stock. When it goes down, he loses more money than you little peons can imagine. A lot of you need to go to the local community college and take some classes or something.

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

"A lot of you need to go to the local community college and take some classes or something."

I don't think that comment was neccesary. State your point and leave the slams out. That's childish.

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

Marquee wrote:

If you look at the SEC filings on the Vonage Investor Relations website, you will see that the 100 share purchase thing is true. It is also interesting that they have over 100,000 shares each available to them on option at a discounted rate. Citron can exercise his options at any time while the CEO has to divide it evenly over four years. SOunds like Citron got the better deal for himself.

You know, I have been thinking about the employees who got to be a part of this DSP. They too have lost money. It must be tough for them as they work there. I'm sure morale hasn't been stellar inside the company this week. I hope for all concerned that this will pass.

Posts: 62 · Full Forum Member Joined: Apr 29, 2005 Posts: 62

Citron is the biggest shareholder, he owns more than 30% if i am not mistaken.

The 100 share purchase is always done but heads of the company at the open when the stock is first listed. Citron has lost 30% of his value in Vonage since it started trading, just like everyone else here that is holding shares, but Citron owns way, way way more shares than you will ever own, making a 30% drop in price worth tens of millions of dollars.

Posts: 75 · Vonage Forum Senior Joined: Jun 01, 2006 Posts: 75

ckudrna wrote:

Citron is the biggest shareholder, he owns more than 30% if i am not mistaken.

The 100 share purchase is always done but heads of the company at the open when the stock is first listed. Citron has lost 30% of his value in Vonage since it started trading, just like everyone else here that is holding shares, but Citron owns way, way way more shares than you will ever own, making a 30% drop in price worth tens of millions of dollars.

True, but there is a HUGE difference. Citron most likely paid PENNIES per share (I'm not talking about the 100 shares he purchased on opening day, but the roughly 15.5 million other shares he owns - assuming he does own 10% and I did my math right). Let's assume that on the high side his strike price was $1. The stock price is currently hanging around the $12 mark, which means his PROFIT is still $11 per share. For any of you who bought in at the IPO price, your LOSS is now at $5 per share. While Citron is theoretically losing money with each drop in price, he will still make around $150million on this. Vonage customers who bought the max (1300 shares) have lost ~$6600 so far. My advice - sell now. Once the 180 day lockout period ends, sit back and watch the Vonage employees dump their shares.