Will Vonage Become a Penny Stock?

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

I fear you might be right. I read today that Citigroup, that's the guys that actually managed the Vonage IPO, have given it a "hold" rating.

For them to give it a hold rating now is not good. That's saying "don't buy it, even at $8". And they managed the IPO.

I'm expecting it to go sub $5 by the end of next week.

Posts: 111 · Vonage Forum Senior Joined: Jun 15, 2006 Posts: 111

I do think it will go below five soon, but I really doubt it will by next week.

Posts: 94 · Vonage Forum Senior Joined: Jun 17, 2006 Posts: 94

The Citigroup analyst has a $11 price target. He might only have a hold due to technical reasons or because of the large amount of short sellers out there.

He however thinks the stock will eventually go to $11 after the shorts get squeezed out.

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

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but I really doubt it will by next week.

Only a couple of bucks to go. One more bit of bad press will push it over the line.

I certainly can't see any good press coming from anywhere. We'll see I guess. It's down a dollar in 3 days though. This graph is very telling:-

http://www.google.com/finance?cid=704814

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The Citigroup analyst has a $11 price target.

What would you do in his position? A $11 price target with stock currently ready to be bought for $8 and it doesn't get a buy rating?

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the large amount of short sellers out there.

Look at it - it's in freefall. That's not the stock shorters causing that, it's the precarious situation that Vonage is in.