You know maybe if I wasn't a Managing Director at a brokerage company, I would have jumped on board this Vonage IPO. You see after a few years of paying a little attention to how the industry works, I learned a thing or two. One was when a company goes for an IPO they spend a lot of time drumming up (or selling) support for their company. Two, the underwriters need to sell the IPO to stoke up demand. And three, I learned how risky an IPO is and that you MUST READ THE FINE PRINT IN SEC FILINGS. This last point is especially important because at an IPO those filings are the closest thing you will ever see to proper disclosures.
Well, according to three sources, one from the Wall Street Journal in the article called Vonage Vows to Pursue Customers Who Renege On IPO Agreement , one from the NY Times called Vonage Moves to Reassure Nervous Investors, and finally from the Washington Post in the article called Vonage Customers Irked as Stock Deal Hits a Snag, it seems that current customers that invested in the IPO are in a mini revolt. This looks real bad and it reminds me of the initial AT&T Wireless IPO, but with the one exception. In the AWE IPO the stock went up initially and then tanked. Personally, I have my wife to thank who said to me, as soon as the stock goes up. dump it and take the profit, which is what I did (look I've been married for 12 years, I learned a thing or two about marriage grief).
Check out this chart which is very, very bad. I won't offer advice
on this website, because well, as my old Chief Legal Council once told me, you don't need any problems. However, what I would want you readers to learn about are two financial terms - so go look them up:
- Support points at a price which this IPO may not have
- Short sellers getting a hold of a stock
If you own this stock, you need to ask yourself why. If you can't come up with a good reason, go back and read the SEC filings and make an informed decision.
PardonMyFrench,
Eric
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