Comments on: Vonage – OpenIPO? http://www.zoliblog.com/2006/05/09/vonage-openipo/ Connecting the dots ... Fri, 19 Aug 2011 16:10:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-477 Anonymous Thu, 25 May 2006 17:14:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-477 Dropping 25% in two days is bad enough, but now it seems that some investors were actually told they had been allocated 0 shares, just to find out after the drop that they got shares after all: <a href="http://www.longdistancetalk.com/vonage-allocating-shares-after-the-fact.php" rel="nofollow">Vonage Allocating Shares After The Fact?</a> Dropping 25% in two days is bad enough, but now it seems that some investors were actually told they had been allocated 0 shares, just to find out after the drop that they got shares after all: Vonage Allocating Shares After The Fact?

]]> By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-476 Anonymous Thu, 25 May 2006 15:30:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-476 Zoli, While I think Henry is right in pointing out the damage this will likely cause to Vonage relative to customer relations; I'm certainly not going to offer sympathy to those who indicated for shares of the IPO. Caveat Emptor applies...these very same customers who indicated for IPO shares did so hoping for a quick flip in most cases. The notion that they didn't do much fundamental research into Vonage's prospects and valuation is all the more reason why they should've treated the "offer" to participate in the IPO with great skepticism. Many of these same customers would never think to self-diagnose intense stomach pain, or replace their own roof, or rebuild their own transmission...they would seek the advice and counsel of experts (doctor, carpenter, mechanic respectively). Why these people didn't seek counsel from financial professionals this time out is beyond me... Jason Zoli,

While I think Henry is right in pointing out the damage this will likely cause to Vonage relative to customer relations; I’m certainly not going to offer sympathy to those who indicated for shares of the IPO.

Caveat Emptor applies…these very same customers who indicated for IPO shares did so hoping for a quick flip in most cases. The notion that they didn’t do much fundamental research into Vonage’s prospects and valuation is all the more reason why they should’ve treated the “offer” to participate in the IPO with great skepticism.

Many of these same customers would never think to self-diagnose intense stomach pain, or replace their own roof, or rebuild their own transmission…they would seek the advice and counsel of experts (doctor, carpenter, mechanic respectively). Why these people didn’t seek counsel from financial professionals this time out is beyond me…

Jason

]]> By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-474 Anonymous Wed, 24 May 2006 23:35:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-474 A lot of people felt like you last night... Even those who wanted the 5000 share allocation had to "settle" for 1300 shares and were upset about that. Of course, after todays action this all turned out to be a blessing in disguise... A lot of people felt like you last night…

Even those who wanted the 5000 share allocation had to “settle” for 1300 shares and were upset about that.

Of course, after todays action this all turned out to be a blessing in disguise…

]]> By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-475 Anonymous Wed, 24 May 2006 00:41:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-475 Adam, you'll be happy not to have received an allocation:-) This is a dud. As with all IPO's the market can go crazy, and pump it up for a while.. but this is not Google, it's a mature business already being commoditized, not sustainable. I feel bad for the post-IPO retail investors... Adam, you’ll be happy not to have received an allocation:-) This is a dud. As with all IPO’s the market can go crazy, and pump it up for a while.. but this is not Google, it’s a mature business already being commoditized, not sustainable.

I feel bad for the post-IPO retail investors…

]]> By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-473 Anonymous Wed, 24 May 2006 00:28:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-473 I've been a customer since the beginning, and they couldn't allocate me even 100 Shares. I'm thinking about switching services. My offer of 100 shares through the Direct IPO was not fullfilled. I guess the demand is really strong. I feel short-changed. I'm still hoping this is a system glitch! I’ve been a customer since the beginning, and they couldn’t allocate me even 100 Shares. I’m thinking about switching services. My offer of 100 shares through the Direct IPO was not fullfilled. I guess the demand is really strong. I feel short-changed. I’m still hoping this is a system glitch!

]]> By: Anonymous http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-472 Anonymous Thu, 11 May 2006 15:41:00 +0000 http://www.zoliblog.com/2006/05/09/vonage-openipo/#comment-472 I, too, am a happy Vonage customer. So when I received the invitation to participate in its IPO, it made me curious. But after reading about the background of Jeffrey A. Citron (Vonage's "principal stockholder, founder, Chairman and Chief Strategist" and former CEO) and his run ins with the law, it made me nervous. More importantly, I decided not to participate in the IPO. You can read all the juicy details here: http://www.sec.gov/cgi-bin/browse-edgar?company=vonage&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany In my opinion, this clearly is an individual who puts his own interests first – above those of his shareholders or customers. Given the increased competition in VOIP from the big players (AT&T, Verizon, etc.), I think the IPO is a desperate attempt by Vonage execs to cash out before the competition beats them down, especially since it was reported that Vonage is now allocating 15% of IPO shares to its customers. In the really hot IPOs, do the customers ever get to participate to such an extent? After the IPO, Citron will own approximate 31% of Vonage. If its shares are priced at $14 - $16 dollars (as the company hopes it will be), then Citron will hold Vonage shares worth approximately $775 - $872 MILLION! And you don't think he's trying to cash out?!? I, too, am a happy Vonage customer. So when I received the invitation to participate in its IPO, it made me curious. But after reading about the background of Jeffrey A. Citron (Vonage’s “principal stockholder, founder, Chairman and Chief Strategist” and former CEO) and his run ins with the law, it made me nervous. More importantly, I decided not to participate in the IPO. You can read all the juicy details here:

http://www.sec.gov/cgi-bin/browse-edgar?company=vonage&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany

In my opinion, this clearly is an individual who puts his own interests first – above those of his shareholders or customers. Given the increased competition in VOIP from the big players (AT&T, Verizon, etc.), I think the IPO is a desperate attempt by Vonage execs to cash out before the competition beats them down, especially since it was reported that Vonage is now allocating 15% of IPO shares to its customers. In the really hot IPOs, do the customers ever get to participate to such an extent?

After the IPO, Citron will own approximate 31% of Vonage. If its shares are priced at $14 – $16 dollars (as the company hopes it will be), then Citron will hold Vonage shares worth approximately $775 – $872 MILLION! And you don’t think he’s trying to cash out?!?

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