Is a reverse split coming?

Posts: 66 · Full Forum Member Joined: May 25, 2006 Posts: 66

Quote:

When will it stop falling?????

My money is on $5.

Probably worth a punt at that price too. They'll get bought out by an ISP at some point and swallowed up into something bigger.

An ISP might pay $6. I can't see them being tempted by anything higher than that though - there's no real value there, just a purchase of "potential" triple-play customers.

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

Unless the ISP has a nationwide/global presence I don't see Vonage being bought.

Many ISP's and Cable Companies focus on regions and Vonages customer base is national and international. A regional player wouldn't buy Vonage because only a segment of the total customers might fit within their specific region.

Posts: 66 · Full Forum Member Joined: May 25, 2006 Posts: 66

Quote:

Unless the ISP has a nationwide/global presence I don't see Vonage being bought.

Vonages customers are primarily US I believe? In which case a national US ISP/cable co would appear to be a fair bet.

In the absence of Vonage being bought, I can't really see an end to the share nosedive.

The basement is the limit?

Posts: 72 · Full Forum Member Joined: Mar 21, 2006 Posts: 72

trillian wrote:

In the absence of Vonage being bought, I can't really see an end to the share nosedive.

The basement is the limit?

Personally, I think the current ranting and raving is just a storm in a tea cup fueled by a small number of would-be investors who got burnt, and will quickly blow over. The stock will then get better support and will find its own price, which I guess will be in the $7-$10 range.

Posts: 66 · Full Forum Member Joined: May 25, 2006 Posts: 66

Quote:

Personally, I think the current ranting and raving is just a storm in a tea cup fueled by a small number of would-be investors who got burnt, and will quickly blow over.

I agree.

I don't think that the ranting and raving by burned investors is influencing the stock all that much though. The price is being influenced by the publics perception of Vonage's profitability and long term existence against some near-impossible to beat competition (the incumbents). Vonage's market has always been the "cheap calls" space. As soon as companies like Vonage start to annoy the incumbents they'll all cut prices until the pure-voice play companies choke.

That's the main problem - lack of profitability and uncertain future. For the stock to get any support, both of those need to change. I think that really needs to happen fast too.

If neither of those change, there is no upswing. There's no point investing in a company which can't provide you a return on your investment (ROI). That's what the market is looking for and that's what the market is not seeing.

My personal take is I see no ROI possible. At all. Ever. Not without some wide sweeping changes and creation of a "new" product, and not just a cheap calls service.

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

I think the fair book value is the limit. isn't it somewhere around $2/share?

-Ade

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

Tazzo wrote:

I predict it will happen before the price drops below 10.

Well, that clearly did not happen.

I see no reason for Vonage to do a reverse split anytime soon, and do not think it will happen as long as the stock is trading above $5 per share.

In other words: My opinion is that a reverse split is NOT an issue with Vonage at the moment.

Posts: 66 · Full Forum Member Joined: May 25, 2006 Posts: 66

Quote:

My opinion is that a reverse split is NOT an issue with Vonage at the moment.

No, and it won't be unless there's a sign that the stock will go < $1.

That's not likely to be a case until it hits $5 (which I suspect will happen). At that point, panic might set in.