How sad for Vonage...

Posts: 4 · New Forum Member Joined: Sep 04, 2008 Posts: 4

Problems after problems...crisis after crisis...this is the official Voyage of Vonage...will it finally be signing off or just recuperating its own wounded wings?

Well, only time could tell...

Posts: 103

I just checked Vonage's stock price today. I use Vonage for my business, and use it because it has been reliable and has nice features. I do not want Comcast's Voip, but now Comcast has more subscribers than Vonage. The stock price is less than a dollar for Vonage. Is this a good time to buy or not? Is this a good time to bail out and use a new phone service?

Posts: 163 · Posted: Sat Dec 20, 2008 12:14 am Post subject:

I don't think you want to gamble your money in the stock market right now. Funds are depleting fast as redemption exceeds inflow of investments, which exerts downward pressure on the stock market. Some investment companies have frozen redemptions until Q2 next year. Regardless of what Vonage is or what it can become, the stock market in general might be headed for further correction. Downward trend could continue as baby-boomers begin to retire in masses.

At best, if things continue the way it is Vonage will be delisted from Nasqad as it has failed to maintain a stock price above $1. Today, the stock lost nearly 40% in value. Perhaps tomorrow it will gain 20%.

If you like risk and volatility, now is the time to buy. Personally I'd take care of my business.

Posts: 229 · Posted: Sat Dec 20, 2008 3:54 am Post subject:

If you have the money to invest, a down market is one of the best times to jump into the market, especially if you're willing to accept short-term losses for potential long-term gains.

At $1/share, if you invest a few hundred dollars, the worst you lose is that few hundred dollars. There's not much further it can fall, it pretty much has nowhere to look but up. Vonage has it's debt financing well under control and is striving to repay its obligations, and while other companies may have other subscribers, Vonage is still one of the most widely recognized leaders in Voip.

Granted I'm not a stock analyst, but I don't think you're taking much of a risk at all by investing in Vonage. It looks fairly similar to my investment in Rally's Hamburgers / Checkers many years ago when I was an employee. The stock had fallen below $1 and I threw a few hundred of my paycheck into it. The stock then took a reverse split and I held on to it. Eventually the stock price rose to several dollars a share before all of it was purchased back when the company when private, and I made back about 9x what I invested, which was literally pocket change since we were limited in how many shares we could purchase at a time.

Posts: 163 · Posted: Sat Dec 20, 2008 11:50 am Post subject:

Your assertion of the risk is that because a stock has less room to fall then somehow it is more likely to go up? This line of thinking is a sad situation. Doesn't matter what the stock price is: if you invest $1000 then, I bet ya, that money has a lot of room to go down.

So back to Vonage. Silver Point LLC - which basically owns it now is a hedge fund. Hedge funds protect their high risk lending arm by shorting the stock with their left arm. They ultimately benefit from the company's bankruptcy because the value of the shares they shorted will go to zero.

The writing is on the wall... those financiers are here for a reason and it isn't necessarily in the investors best interest. Beware.

Posts: 229 · Posted: Sat Dec 20, 2008 12:24 pm Post subject:

If losing $1000 in the stock market bothers you, then you are not prepared to invest even $1 in the stock market. If you want absolutely safe investments, then you need to be speaking with your financial adviser about that instead of speculating as to whether or not Vonage stock will get better. $1000 is practically nothing in the stock market.

A lot of tech stocks are falling right now, I don't think that's contributed much to Vonage's issues but it certainly hasn't helped them. Vonage's Q3 statement shows that the company is improving in several areas, increasing revenues while decreasing costs and getting a handle on their debt. Will that help in the end one year from now? Hard to say right now.

That said, "great reward comes with great risk" if you're going to subscribe to the theory that $1000 is a great risk. If you're looking to make a quick rebound profit you're not going to find it here unless you're experienced in manipulating cheap stocks. Buying almost any stock should be looked at as a long-term investment.

Posts: 1 · New Forum Member Joined: May 27, 2009 Posts: 1

On May 18, 2009, Vonage Network LLC, a wholly owned subsidiary of Vonage Holdings Corp. (the "Company"), entered into a fourth amendment to the Services Agreement with Third Party Verification, Inc., dated February 9, 2005 (as previously amended, the "Services Agreement"). The amendment, which is deemed effective as of May 1, 2009, extends the term of the Services Agreement to April 30, 2011. In exchange for reduced pricing, until April 30, 2011, Third Party Verification, Inc. will also remain the exclusive provider of the services that it provides under the Services Agreement, including third party verification of pertinent local number portability information from the Company's subscribers.
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