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Anyone able to get in on the Vonage IPO?

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Anyone able to get in on the Vonage IPO?

Old 05-25-06, 01:26 PM
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Anyone able to get in on the Vonage IPO?

Be glad if you didn't

<img src="http://ichart.finance.yahoo.com/w?s=VG">

Funny thing was I commented to myself when I was buying it about how it'll do knowing my luck w/ stocks... looks like I was right
Old 05-25-06, 01:29 PM
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Well a one day chart is all I need to go on for stock decisions. SELL SELL!!!
Old 05-25-06, 01:30 PM
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i passed and i'm a customer

this is a company kind of like TIVO where they make a new tech popular and let others take over
Old 05-25-06, 01:32 PM
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Considering that one day chart was their first day it doesn't bode well for the future. We'll see though, I suspect part of the problem is noone is quite sure what direction the tech is going to go in general and it was well known the IPO was to bring in more money for the sole purpose (atleast that's my understanding) of buying more advertising. Not sure if that's the usual thing so some maybe nervous about that.
Old 05-25-06, 01:38 PM
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Originally Posted by al_bundy
i passed and i'm a customer

this is a company kind of like TIVO where they make a new tech popular and let others take over
Ditto. I reviewed the opportunity like any other security and decided to pass.
Old 05-25-06, 01:38 PM
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I read an article where one subscriber bought stock, dumped it because it tanked, then cancelled his subscription and went with his cable company's VOIP.

The major concern here is that they don't seem to have customer loyalty, besides being cheaper than everyone else. When competitors like cable come in, with their package deals, Vonage either has to lower the cost or risk losing their customer base. Besides, isn't VOIP mainly cheaper because of the lack of taxes, as opposed to regular land lines? How long until Uncle Sam starts getting his piece of the pie?
Old 05-25-06, 01:42 PM
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I have Vonage for work and Sunrocket for home and truthfully, I prefer Sunrocket (and it is cheaper). That's not a commercial but a point that they have a lot of competition and they may not have the best technology, either.
Old 05-25-06, 01:45 PM
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Im a customer but I didnt want the stock. I didnt see them being able to stay competitve in the long run.
Old 05-25-06, 01:51 PM
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Originally Posted by nemein
<img src="http://ichart.finance.yahoo.com/w?s=VG">
(
Is that a sound meter readout for their jingle?

Woohoo woo hoo hoo.
Old 05-25-06, 02:24 PM
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Originally Posted by nemein
Considering that one day chart was their first day it doesn't bode well for the future. We'll see though, I suspect part of the problem is noone is quite sure what direction the tech is going to go in general and it was well known the IPO was to bring in more money for the sole purpose (atleast that's my understanding) of buying more advertising. Not sure if that's the usual thing so some maybe nervous about that.
the fact that they don't have a business model is one reason to be nervous about the stock. their whole model is use Cisco tech and run it over the other guy's network.

if you want to make money in VOIP then look at the guys selling the hardware. i would even look at Verizon as a VOIP play before I look at Vonage.
Old 05-25-06, 02:35 PM
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CNNfn had a couple of good articles why it was a terrible idea to invest on Vonage. Also, when they contacted me two weeks ago to participate in the IPO I knew they were in trouble because they hadn't built up a sizable institutional book yet.
Old 05-25-06, 03:36 PM
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Worst. Company. Ever.
Old 05-25-06, 06:25 PM
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if vonage wants some high margin revenues they should look into wholesaling. there are a bunch of small VOIP startups. Vonage should offer them network access and backoffice resources and the small guys would simply concentrate on selling their insignificant brand. otherwise it's a waste of money running the stupid TV ads and paying 3 years of revenues in customer acquisition costs
Old 05-25-06, 09:20 PM
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The fact that they offered stock to the "public" (ie, their customers) was a bad sign to begin with. There is really no way to make money on an IPO unless you are an institutional buyer. I choose to pass on this one, especially after studying the S-1. Did anyone read the disclosure about Jeffrey Citron (fmr CEO)? That alone would scare anyone off. I love using the service at home, but until the company stablizes I will let them spend some one elses money!
Old 05-25-06, 09:33 PM
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what is his story? didn't know he left. i heard he started something else before vonage
Old 05-25-06, 09:42 PM
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He didn't leave, he just is forbidden from being a CEO of a public Company, so he became Chief Strategist. The following is from the S-1:


INFORMATION CONCERNING OUR FOUNDER, CHAIRMAN AND CHIEF STRATEGIST


There are numerous factors about the past of our Founder, Chairman and Chief Strategist, Jeffrey A. Citron, that you should consider before investing in our common stock.

Past SEC actions against Mr. Citron and others. Prior to joining Vonage, Mr. Citron was associated with Datek Securities Corporation and Datek Online Holdings Corp., including as an employee of, and consultant for, Datek Securities and, later, as one of the principal executive officers and largest stockholders of Datek Online. Mr. Citron originally joined Datek Securities in 1989 at the age of 18 at the invitation of Sheldon Maschler (another principal executive officer and large stockholder of Datek and long-time friend of Mr. Citron's family). Datek Online, which was formed in early 1998 following a reorganization of the Datek business, was a large online brokerage firm. Datek Securities was a registered broker-dealer that engaged in a number of businesses, including proprietary trading and order execution services. During a portion of the time that Mr. Citron was associated with Datek Securities, the SEC alleged that Datek Securities, Mr. Maschler, Mr. Citron and certain other individuals participated in an extensive fraudulent scheme involving improper use of the Nasdaq Stock Market's Small Order Execution System, or SOES. In January 2003, Mr. Maschler, Mr. Citron and others entered into settlement agreements with the SEC to resolve charges that they had improperly used SOES from 1993 until early 1998, when Datek Securities' day-trading operations were sold to Heartland Securities Corporation. Mr. Maschler and others, but not Mr. Citron, were alleged to have continued such improper use until June 2001 at Heartland Securities. SOES, an automated trading system, was restricted by NASD rules to individual customers, and brokerage firms such as Datek Securities were prohibited from using SOES to trade for their own accounts. The SEC alleged that Mr. Citron and the other defendants accessed the SOES system to execute millions of unlawful proprietary trades, generating tens of millions of dollars in illegal profits. The complaint further alleged that these defendants hid their fraudulent use of the SOES system from regulators by allocating the trades to dozens of nominee accounts, creating fictitious books and records, and filing false reports with the SEC. To settle the charges, Mr. Maschler, Mr. Citron and the other individuals paid $70 million in civil penalties and disgorgements of profits, of which Mr. Citron paid $22.5 million in civil penalties. These fines were among the largest fines ever collected by the SEC against individuals. In addition, Mr. Citron was enjoined from future violations of certain provisions of the U.S. securities laws, including the antifraud provisions set forth in Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated under the Exchange Act. Mr. Citron also agreed to accept an SEC order that permanently bars him from association with any securities broker or dealer. Mr. Maschler and the other individuals and corporations agreed to similar restrictions. Mr. Citron settled theses charges without admitting or denying the allegations in the SEC's complaint. The SEC reached a separate settlement with Datek Securities (through its successor iCapital Markets LLC) in January 2002, which resulted in a censure and a civil penalty of $6.3 million.

Past NASD disciplinary action. In 1994, Datek Securities, Mr. Maschler, Mr. Citron and others associated with Datek Securities were the subject of an administrative complaint by the NASD for violating NASD rules governing SOES between November 1991 and February 1993. The complaint also alleged improper supervision of subordinates responsible for entry of SOES orders. Datek Securities, Mr. Citron and the other individuals settled the charges in January 1997. Pursuant to the settlement, Mr. Citron paid a fine of $20,000 and was suspended from any association (other than as a computer consultant) with Datek Securities for 20 days.

Past association with Robert E. Brennan. During the late 1990s, Mr. Citron was an acquaintance of Robert E. Brennan, having been introduced to Brennan by Mr. Maschler in 1996. In that year, Mr. Citron purchased real estate and an airplane from entities associated with Brennan. Mr. Citron also socialized with Brennan and vacationed with Brennan in early 1999. Brennan previously owned First Jersey Securities, a securities brokerage firm that ceased doing business in 1985 after civil actions


were brought by the SEC. In 1995, Brennan was fined $75.0 million by the SEC for massive securities fraud, including fraud relating to penny stock sales by First Jersey Securities. Brennan also was permanently barred from the securities business and enjoined from violations of the U.S. securities laws. In 2002, Brennan was convicted of bankruptcy fraud, money laundering, and obstruction of justice and was sentenced to a total of 12 years in federal prison. Mr. Citron has never been implicated in any of these actions, complaints or findings against Brennan and has not had material business or personal dealings with Brennan since 1999.

Impact of these matters on our company. There is a risk that some third parties will not do business with us, that some prospective investors will not purchase our securities or that some customers may be wary of signing up for service with us as a result of the past SEC and NASD settlements and related allegations against Mr. Citron, as well as his past association with Mr. Maschler or Brennan. We believe that some financial institutions and accounting firms have declined to enter into business relationships with us in the past, at least in part because of these matters. Other institutions and potential business associates may not be able to do business with us because of internal policies that restrict associations with individuals who have entered into SEC and NASD settlements. While we believe that these matters have not had a material impact on our business, they may have a greater impact on us after we become a public company, including by adversely affecting our ability to enter into commercial relationships with third parties that we need to effectively and competitively grow our business. Further, should Mr. Citron in the future be accused of, or be shown to have engaged in additional improper or illegal activities, the impact of those accusations or the potential penalties from such activities could be exacerbated because of the matters discussed above. If any of these risks were to be realized, there could be a material adverse effect on our business or the market price of our common stock.

119
He is a pretty slimy guy who has done pretty well for himself. Makes you wonder about the stuff that didn't become public...

Last edited by obzhagen; 05-25-06 at 10:00 PM.
Old 05-26-06, 09:50 AM
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The interesting thing is... That I did wanted to participate (for the long run), so I opted for 100 [email protected]$17(=$1,700). However, they didn't allocate me any. So I guess there was plenty of demand. However, you don't hear me complaining!
Old 05-26-06, 11:30 AM
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someone doesn't want their shares, over 10% of outstanding shares have been traded on a daily basis since the IPO
Old 05-26-06, 05:49 PM
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Congrats exm - you saved yourself $398 dollars. You should go buy something nice!
Old 05-26-06, 06:02 PM
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Going off topic on Vonage, but how does a person go about buying stock?
Old 05-26-06, 06:21 PM
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Originally Posted by obzhagen
Congrats exm - you saved yourself $398 dollars. You should go buy something nice!


That's EXACTLY how I feel...

XBOX 360!

(now I have to convince my wife)
Old 05-26-06, 07:29 PM
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Originally Posted by Finch03
Going off topic on Vonage, but how does a person go about buying stock?
2 ways

Some big companies like Proctor and Gamble will sell you their stock from their treasury. Just go to the company's website in the investor relations section for more info.

Or open an account with Etrade, TD Ameritrade, Fidelity or some other broker and you can trade for $8 to $30 per trade depending on the company and your trade volume.

Before you do, go read a few books about picking stocks. First you need to read something basic like one of Jim Cramer's books or Peter Lynch's One up on Wall Street. Then read a more in depth book about reading financial statements and basic accounting and finance.
Old 05-30-06, 10:21 AM
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this morning on CNBC they said that Vonage is willing not to charge you for the shares. Apparently a lot of people are angry and they want their customers to stay so they are willing to give the money to the underwriter and leave people with the shares.
Old 05-30-06, 06:17 PM
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I read about this today. Sounds wild. I have never heard of anything like this. It would create an accounting nightmare. How would you treat the people who have already funded their shares? Give them back money? What about othe shareholders?

This was an interesting read too:
http://www.fool.com/news/commentary/...source=mppromo
Old 05-30-06, 06:20 PM
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Originally Posted by al_bundy
2 ways

Some big companies like Proctor and Gamble will sell you their stock from their treasury. Just go to the company's website in the investor relations section for more info.

Or open an account with Etrade, TD Ameritrade, Fidelity or some other broker and you can trade for $8 to $30 per trade depending on the company and your trade volume.

Before you do, go read a few books about picking stocks. First you need to read something basic like one of Jim Cramer's books or Peter Lynch's One up on Wall Street. Then read a more in depth book about reading financial statements and basic accounting and finance.
Ahem $5 trades are easy too, with Ameritrade Izone.

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