dean2900
join:2003-02-13
Lewisville, NC
| Vonage IPO Price -- Are they insane?
Hi All,
I just received email from Vonage that I was eligible to purchase their IPO stock at the price of 16 - 18 bucks per share.
I like Vonage and have used them for 3 years and referred numerous people to them but that price is just to f***ing high!!!
I could wait until after they go public and watch the stock drop and then buy it at a lower price.
I wish them all the luck in the world but I don't see how buying stock for a company that is losing millions of dollars and has strong competition should IPO anywhere near that price.
Dean |
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W8ASA
Tieng gi vay?
join:2000-07-31
Dayton, OH
clubs: 
 ·magicjack.com
 ·AT&T Midwest
 ·RoadRunner Cable
·Vonage
| I'm in for a few shares, because there will be no fees to purchase them. Once I have them, I'll transfer the shares to my "cheap" brokerage account, and pay only a little bit for the transaction to sell them.
My opinion is that, after the tech bust of a few years ago, people are once again ready to "bid up" some of these stocks, and I'm hoping this one will take off.
As a Vonage user, I'm very pleased with what they provide (I have the UTStarcomm wi-fi phone), and see this as a huge growth area.
However, I could be wrong... and it may tank, but the prospectus says -several times- that it could indeed fail.
Ya pays yer money and ya takes yer chances.
--
Microwave and RF Components at www.ohiomicrowave.com |
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OrygunSunset
join:2006-04-25
Portland, OR
| reply to dean2900
said by dean2900  :Hi All, I wish them all the luck in the world but I don't see how buying stock for a company that is losing millions of dollars and has strong competition should IPO anywhere near that price. Dean I too received the same e-mail. I know that early on I referred a ton of people to them . A.) there not a household name (Yet the Woo Hoo Song/ Marketing I think was a massive blitz that was done to make Vonage more of a household name. Lets face it they are not a "Google" or "Micro$oft" The user base is much smaller due to Broadband constraints in the US.
I am curious as to where you have read that they are loosing money? I have to imagine that on average they have 1 million subscribers at approx $25 a month , That is almost .5 Billion in gross revenues a year ( I said average this is only my analysis. Is VOIP service for $8 a month a lost leader or can service be provided truly this cheaply, Vonage is a sharp business model in that they pass the taxes through to the customer. ( Or retain the overages as profit)
I suspect that they are healthy and not losing money otherwise they would have a hard time selling why you should buy into the IPO. ( just my .02 cents I haven't studied anything really on the company other than the SEC's 2003 indictment on Jeff Citron now the COB of Vonage. |
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priller
join:2000-10-20
Gainesville, VA
·voip.ms
·Callcentric
·Vonage
·callwithus
1 edit | Not loosing money? Read the SEC filings....
»www.sec.gov/Archives/edgar/data/···s-1a.htm
"For 2005 and the three months ended March 31, 2006, our net loss was $261.3 million and $85.2 million, respectively." |
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dean2900
join:2003-02-13
Lewisville, NC
| reply to W8ASA
Good luck on the purchase. I think it is too risky. Someone already posted a link to the SEC filings.
It even said when you agreed to sign up for the IPO offer that Vonage has losted 300 + millions and expects to continue to lose money.
I will say that about 2.5 years ago I contacted Vonage Holdings and tried to see if I could invest but they would allow any outside investing. I would have love to have gotten in on the pre-ipo stock.
I hope you make money but i deem this investment way too risky at that price.
Good Luck,
Dean |
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jimeez
Heads Are Empty
Premium
join:2002-04-28
Mount Holly Springs, PA
clubs:
·Comcast
·Vonage
| reply to dean2900
I just received my email today too. I agree, the price is way too high for my taste. But if you're into gambling and you have some money to spare, I could think of worse companies in which to invest.
--
Support HR 1440 Or lose your rights to hear and see what you pay for! |
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DMS1
join:2005-04-06
Carrollton, TX
| reply to dean2900
said by dean2900 :Hi All, I just received email from Vonage that I was eligible to purchase their IPO stock at the price of 16 - 18 bucks per share. I like Vonage and have used them for 3 years and referred numerous people to them but that price is just to f***ing high!!! How can an IPO share price be "too high"? It is just a number. What matters is the total value of the IPO (the share price times the number of shares issued), which must then be examined in conjunction with several financial metrics - profitability being just one of them. |
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bigchris
Do Not Shoot The Messenger
Premium,MVM
join:2002-04-29
Leesburg, VA | US Citizens only?
What the heck is that about only being available to US Citizens?! Is that normal? Surely they should mean legal US Residents? |
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stevech1
join:2005-01-08 | reply to dean2900
Re: Vonage IPO Price -- Are they insane?
news article on the IPO
»us.ft.com/ftsuperpage/superpage.···ofinance |
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dean2900
join:2003-02-13
Lewisville, NC
| reply to dean2900
I officially used my stock money on NWS instead of Vonage. I like NWS a lot but do your own research. Look into the number of hits myspace.com is getting, etc.
I would have liked to invested in Vonage several years ago but I am afraid they are just trying to get capital to pay off their 300m in losses.
I will keep my eye on both Vonage and NWS and see if I made the right decision.
Dean |
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Fickey
Terrorists target your resolve
join:2004-05-31
1 edit | reply to dean2900
I haven't read the prospectus & I'm not a Vonage subscriber, but this sounds like an interesting TRADE, not an investment. I've done a lot of IPO speculation, and the hype around this one will be huge (that's good), but the comparatively wide distribution of shares is an unusual X-factor (a negative one from the speculator's perspective). Also, it sounds like Vonage will get most if not all of the IPOs proceeds (good), but insiders/venture capitalists already own millions of shares (dilutive). If I were qualified, I'd flip the shares the first trading day ASAP. Based on the above & the large size of the offering (31.25 million), I predict it opens/spikes up around a buck or two over the offering price, quickly pulls back, & closes the day about even. Too bad I won't be able to edit this post once the stock starts trading to make sure my predictions remain "accurate". 
EDIT: Populist CNBC stock guru Jim Cramer also just said Vonage is good for a quick trade, not an investment. Makes me feel smart... for now. |
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SNT
Premium
join:2002-07-17
Satellite Beach, FL | reply to dean2900
If I had the money, I would probably buy.
Sooner or later Vonage will be bought. |
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RickNY
Premium
join:2000-11-02
New York | reply to dean2900
Now they're spamming everyone's voicemail with a recorded message hawking the IPO. |
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techie_grrrl
join:2003-06-11
USA
| reply to dean2900
I got my v-mail this morning.
All the research I've been doing on the web indicates only an idiot would buy the stock; however, I just can't seem to get my mind off it.
When I got the v-mail "offer" this morning, I thought it was b\c I have been a sub for almost 4 years and have referred so many other subs. Turns out I just happended to have the service when they filed.
Also, @ $16 - $18 a share and a 100 share minimum, they've got be kidding.
--
The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails. |
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dean2900
join:2003-02-13
Lewisville, NC
| Techie,
I have been with them for 3 years or so and literally had referred around 25-30 people that signed up for service. I thought that it was a limited opportunity at first when I received the email. I had no idea at the time that they were email all customers at the time.
I honestly think it is a bad bet but the stock market is like playing craps anyways 
Dean |
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CraigBee
join:2004-07-23
Overland Park, KS
| reply to dean2900
They spamed my voice mail box also. I've had the voice mail DISABLED since I signed up about 5 years ago, yet they are able to leave a voice mail on it. It bothers the snot out of me, because I get the studder dial tone and have to log into my account to delete the voice mail. I called Vonage, and the 3 different reps that answered in 3 different foreign accents did not believe me that I had received a voice mail when I have voice mail disabled. |
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Julio
Bachatero y Que?
Premium
join:2003-03-19
Brooklyn, NY
clubs:
| reply to dean2900
here is the voicemail. |
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RickNY
Premium
join:2000-11-02
New York
| reply to dean2900
AND... they're also sending junk out via snail mail.. This came today.. |
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dean2900
join:2003-02-13
Lewisville, NC
| reply to dean2900
The junk email is part of the reason I stopped referring people to Vonage. They would keep sending out emails to people on my list as possible referrals.
I do think the Vonage service is a good deal for the money but I dont care much for many of their business ethics.
I still feel the stock is just an attempt to get captial. I believe I can purchase it cheaper when it comes down although there could be an initial spike.
Dean |
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StillLearn
Premium
join:2002-03-21
Streamwood, IL
·AT&T Midwest
| reply to CraigBee
said by CraigBee :They spamed my voice mail box also. While I am not a subscriber, I have friends who are. That was very tacky.
Prospectus PDF page 35 of 198 says they plan to acquire new customers from outbound telemarketing. Outbound telemarketing is beneath tacky.
Page 19 of 198 (labeled 16) says their founder and chairman is a securities crook.
It still might be worthwhile to buy the IPO while holding your nose. |
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