Citron's Failure: VG already below his support level

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

Jeff Citron spent $1.26 million of his own money buying shares of VG on 8/4/06 for an average price of $6.70. It worked...
...for about a week

Now Vonage is 20 cents below where he tried to prop it up, and has resumed its secular downward trend to $1 and below. The pattern seems to be dropping 1-3% a day for 3-4 days, then bouncing back up or breaking even for a couple days, then falling back down for a few more days.

On average, Vonage has dropped 9.4 cents a day since July 1st.

Jeff Citron tried to stem the bleeding with more than a million of his own money, and all he did was buy it a few days' respite.

Will he try again? I doubt it, but the last two weeks have shown that it doesn't matter.

I would hate to see the people here who still own shares to lose even more money because they have an emotional attachment to their investment. If you bought in the IPO you still have 38.2% of you original investment left. Sell it and run.

Right now only YOU have the right to sell VG shares. Pretty soon, just about three months from now, all of the early Vonage investors who bought their shares for as little as 70 cents will have the right to sell their shares on the open market.

The number of potential sellers of VG will increase by more than 300% in November. Do you think the number of buyers will also suddenly expand? I don't. That is why I am better against Vonage.

Posts: 9 · New Forum Member Joined: Jul 23, 2006 Posts: 9

Kudos to BigTime! Glad to see someone bring reality to investing in VG. I'm no stock expert but here's my take.

Citron has the money to throw around and typical investors don't. Futhermore, he (and VG underwriters) only paid about $1.50/share anyway. They are probably high-fiving each other right now about how much money they make (for themselves!). They proposed the $17 at opening. Weeks later, they now concluded that it's not even worth at $7! How do they get away with that? Aren't they supposed to be the experts and looking after us investors? Well, we are in for a rude awakening. It's all about them making money first, and we are at the bottom of the barrels.

Look at all the misdeeds done by greedy CEOs and corporations. When caught, they always say that they are not guilty. Low and behold when they are convicted in court, some admit that they are while others paid the fine without admitting to the crime....how is that possible? How could they lie to us and not feel ashamed? They have no values whatsoever. How could a convicted felon Citron be a CEO of a company? You commit the crime, then use the money that you made from that crime to get you out of the crime you got in the first place....is America great?

OK...for those who want to hold onto the stocks. If you bought the shares at $17 and don't want to sell them. Here's a perspective. The share is currently $6.75. If you were to hold on what you have now, the stock return has to be about 250% to recoup your lost. Consider the average stock return about 8% per year. Now, do you think you would get that return with VG stock or with some other stock or investment? If you still want to hold, you must be a very patient person. Regardless, hope you can recover your loss....I feel you pain!

Posts: 188 · Vonage Forum Master Joined: Mar 07, 2004 Posts: 188

Enter the Vonage Cheerleaders.....

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

Small correction to GetReal's post:

Citron is not a convicted felon. He plea-bargained, and his punishment for swindling small investors was a $22.5 million fine and being banned for life from the securities industry. This second part was no small thing: he worked in securities his whole life, beginning when he was 17 (he didn't go to college.)

Posts: 9 · New Forum Member Joined: Jul 23, 2006 Posts: 9

I stand corrected. A "convicted felon" is defined as someone who is legally convicted of a crime...hm.....He swindled many millions... got caught....paid few millions without admitting fault....hmmm...