Vonage Bankers Bent Us Over !!

Posts: 21 · Posted: Sat Jun 03, 2006 9:22 am Post subject:

I don't buy the "this is not a good stock" business, This stock should have ran just like any other company with this popularity. One major reason companies go public is to raise money. This means they have some ideas, want to make things better, implement some new technology and/or pay off some debt. Yes their balance sheet might have looked like trash. So what!

I have faith in Vonage.

Posts: 1 · New Forum Member Joined: Jun 03, 2006 Posts: 1

gfoulks wrote:

Not true... I have a TDAmeritrade account that I use for my active trading and I have Level II quotes and I also have access to some incredible live charts. I can see shares in lots as they are being sold/bought, I can see buy/sell trends... all kinds of stuff.

What I observed was the following... When the stock opened it ticked up for about a second then ticked down, then down again... again and again. After about five minutes people simply started to unload the stock left and right. Nobody was buying it was all selling pressure.

I don't think the Underwriters are to blame here because they priced the stock and allocated shares based on the demand. The demand was there but didn't last once some people found that it wasn't going to do a moonshot. The DSP program hurt the stock more than it helped because it brought individual investors into the stock that really had no business being it. They didn't understand fully what they were getting themselves into.

My take is that a number of individuals where in the stock simply to flip it, had it taken off right out of the gate. Since it didn't take off everyone simply sold it as quickly as they could to get out of it.

I also feel that many of those people here who are saying they are not going to pay for their shares are also the ones that were looking to flip at the first decent gain. Since they where not able to secure a quick gain they are looking for excuses to not pay for what they are obligated for.

Hey, I looked at the Vonage Prospectus, too... It gave only a VERY NEGATIVE outlook of the company's chances of making a profit. I did not see ANYTHING in there that claimed the company was improving things, changing strategy or claimed that they were going to turn things around. It was the most gloomy thing I've seen ANY company write about itself.

I had my own personal experience with penny stocks about 12 years ago and lost about $800. Most of the people on here bought 100 shares, so they've lost about $500, right?

So.... live and learn. Not too many people flip stocks successfully.

-John

Posts: 88

Skip wrote:

gfoulks wrote:

Not true... I have a TDAmeritrade account that I use for my active trading and I have Level II quotes and I also have access to some incredible live charts. I can see shares in lots as they are being sold/bought, I can see buy/sell trends... all kinds of stuff.

What I observed was the following... When the stock opened it ticked up for about a second then ticked down, then down again... again and again. After about five minutes people simply started to unload the stock left and right. Nobody was buying it was all selling pressure.

I don't think the Underwriters are to blame here because they priced the stock and allocated shares based on the demand. The demand was there but didn't last once some people found that it wasn't going to do a moonshot. The DSP program hurt the stock more than it helped because it brought individual investors into the stock that really had no business being it. They didn't understand fully what they were getting themselves into.

My take is that a number of individuals where in the stock simply to flip it, had it taken off right out of the gate. Since it didn't take off everyone simply sold it as quickly as they could to get out of it.

I also feel that many of those people here who are saying they are not going to pay for their shares are also the ones that were looking to flip at the first decent gain. Since they where not able to secure a quick gain they are looking for excuses to not pay for what they are obligated for.

Hey, I looked at the Vonage Prospectus, too... It gave only a VERY NEGATIVE outlook of the company's chances of making a profit. I did not see ANYTHING in there that claimed the company was improving things, changing strategy or claimed that they were going to turn things around. It was the most gloomy thing I've seen ANY company write about itself.

I had my own personal experience with penny stocks about 12 years ago and lost about $800. Most of the people on here bought 100 shares, so they've lost about $500, right?

So.... live and learn. Not too many people flip stocks successfully.

-John

No one bought 100 shares. Many that submitted offers for 200 did not get them.

Posts: 476

anthonyfellows wrote:

No one bought 100 shares. Many that submitted offers for 200 did not get them.

Maybe they requested more and were only allocated 100.

Posts: 4 · New Forum Member Joined: Jun 05, 2006 Posts: 4

If you offered 300 you got 100.

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

anthonyfellows wrote:

No one bought 100 shares. Many that submitted offers for 200 did not get them.

Those who requested 100 shares were not allocated any shares.
SOME of those who requested 200 shares were allocated 100 shares after a random drawing.
Those who requested 300 or 400 shares were allocated 100 shares each.

For higher requests up to the maximum of 5000 shares, allocation was 25% of the requested shares, rounded UP to the nearest 100 shares.