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Vonage IPO for Customers

SALvation

Senior member
Apr 10, 2001
964
0
0
If you are/were a Vonage customer from 12/15/2005 - 2/13/2006, you are eligible to get in on the upcoming Vonage IPO. You can register for an allocation of shares at www.vonageipo.com. Note that you have to be a U.S. citizen, and must buy a minimum of 100 shares at an expected IPO price range of $16-18/share. You also have to open a limited brokerage account through one of their selected brokers.
 

jmunjr

Senior member
Mar 8, 2000
402
0
71
Vonage has lost money every quarter since its inception. What year is this, 1999? These days stock prices don't do so well when you're losing money..

The VAST majority of analysts and so forth think Vonage's stock price will tank after the IPO.

I'm pretty sure this is an endothermic deal...
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: jnmunsey
Vonage has lost money every quarter since its inception. What year is this, 1999? These days stock prices don't do so well when you're losing money..

The VAST majority of analysts and so forth think Vonage's stock price will tank after the IPO.

I'm pretty sure this is an endothermic deal...

roflcopter. When have the "vast majority" of analysts ever thought a stock price would tank?

endothermic deal? I have yet to hear that term in relation to IPO. Do you mean that it's just going to benefit insiders? Well no crap! They have funded the corporation for a long time, its time for them to unlock their equity.

While they have lost money every quarter, they are also growing pretty well, seem to have a solid business model, and will continue to grow and eventually profit. Seeking external capital will significantly lower costs, further enabling the possibility of profit.

Comparing Vonage, an actual services company with a business model and significant room to grow, to a .bomb highlights the lack of actual knowledge about businesses.
 

Drekce

Golden Member
Sep 29, 2000
1,398
0
76
I signed up for the IPO on the site provided in the email from Vonage. I am still researching and considering whether I should buy. The shares must be bought in quantities of 100, so anyone wanting in will have to be willing to drop about $1,800 as a minimum.
 

Drekce

Golden Member
Sep 29, 2000
1,398
0
76
This thread should be in OT, since it does not really fit into the "hot deals" category.
 

jmunjr

Senior member
Mar 8, 2000
402
0
71
Solid business model? This is one of the reasons many think the price will drop, because the lack of one.

What differentiates Vonage from the HUNDREDs of other Voip companies out there? I use Vonage, and as a Vonage customer I do not feel confident about their company.

Competition is the 2nd biggest enemy(next to mismanagement).. There is way too much and from all sorts of places(telcos, cable companies, ISPs, etc).

Just my opinion...
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: jnmunsey
Solid business model? This is one of the reasons many think the price will drop, because the lack of one.

What differentiates Vonage from the HUNDREDs of other Voip companies out there? I use Vonage, and as a Vonage customer I do not feel confident about their company.

Competition is the 2nd biggest enemy(next to mismanagement).. There is way too much and from all sorts of places(telcos, cable companies, ISPs, etc).

Just my opinion...

So because there are a lot of competitors that means they can never earn a profit? Wow, there are many companies that should just close their doors now...

While there are a lot of voip companies out there, vonage is still growing and narrowing loss. Give them access to cheaper capital and see what they can do. However, just don't go hog wild with them.
 

FelixDeCat

Lifer
Aug 4, 2000
31,015
2,683
126
The need to have a p/e ratio not a p/l ratio to be viable. They are just hitting the equity markets for more cash to burn. Then expect the price increases to hit to stop the bleeding. More customers defect and Sunrocket rockets to the sun! :shocked:


:laugh:
 

Codewiz

Diamond Member
Jan 23, 2002
5,758
0
76
Originally posted by: jnmunsey
Solid business model? This is one of the reasons many think the price will drop, because the lack of one.

What differentiates Vonage from the HUNDREDs of other Voip companies out there? I use Vonage, and as a Vonage customer I do not feel confident about their company.

Competition is the 2nd biggest enemy(next to mismanagement).. There is way too much and from all sorts of places(telcos, cable companies, ISPs, etc).

Just my opinion...

And what is Google's business model? Ads?

I am not saying that the Vonage IPO is a good idea but for an IPO to be successful has nothing to do with "solid business plan". I am not looking to hold on to the Vonage stock.

Another reason I am concerned. If I decided to buy into it, I think a lot of people will be thinking the same as me.

 

JS80

Lifer
Oct 24, 2005
26,271
7
81
I signed up for 5k shares. Plan to sell first day.

jnmunsey: link to negative analyst sentiment?
 

gnumantsc

Senior member
Aug 5, 2003
414
0
0
I would not invest in Vonage for the simple fact that the Net neutrality bill was thrown out and now Telcos have their way of making your Vonage quality sound like crap or you can purchase your Telco's VOIP service and get a good line quality.

Vonage = FTL!
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Originally posted by: gnumantsc
I would not invest in Vonage for the simple fact that the Net neutrality bill was thrown out and now Telcos have their way of making your Vonage quality sound like crap or you can purchase your Telco's VOIP service and get a good line quality.

Vonage = FTL!

get in on the IPO price and sell first day FTW!
 

DaiShan

Diamond Member
Jul 5, 2001
9,617
1
0
I dunno, Vonage spends entirely too much money on advertising IMO. They claim that they want a dominant position in market share at any cost, well when you're losing money consistently, I just don't see the point. Best case scenario is Vonage spends billions on hyping the VOIP market, then goes under, and the free-rider effect leads to greater competition. Of course, it would make things a LOT easier if the government would lower the requirements to become a CLEC...
 

HyTekJosh

Golden Member
Jan 20, 2001
1,500
0
0
Originally posted by: JS80
Originally posted by: gnumantsc
I would not invest in Vonage for the simple fact that the Net neutrality bill was thrown out and now Telcos have their way of making your Vonage quality sound like crap or you can purchase your Telco's VOIP service and get a good line quality.

Vonage = FTL!

get in on the IPO price and sell first day FTW!

How much do you think its going to go up on the first day?
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Originally posted by: HyTekJosh
Originally posted by: JS80
Originally posted by: gnumantsc
I would not invest in Vonage for the simple fact that the Net neutrality bill was thrown out and now Telcos have their way of making your Vonage quality sound like crap or you can purchase your Telco's VOIP service and get a good line quality.

Vonage = FTL!

get in on the IPO price and sell first day FTW!

How much do you think its going to go up on the first day?

I'm not a fortune teller. However, ebay bought skype for 35 times sales. Vonage is priced at approx 10 times sales. I would hope the market to price it at 15 times sales (50% gain).
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Originally posted by: JS80
Originally posted by: HyTekJosh
Originally posted by: JS80
Originally posted by: gnumantsc
I would not invest in Vonage for the simple fact that the Net neutrality bill was thrown out and now Telcos have their way of making your Vonage quality sound like crap or you can purchase your Telco's VOIP service and get a good line quality.

Vonage = FTL!

get in on the IPO price and sell first day FTW!

How much do you think its going to go up on the first day?

I'm not a fortune teller. However, ebay bought skype for 35 times sales. Vonage is priced at approx 10 times sales. I would hope the market to price it at 15 times sales (50% gain).

OK just read over the prospectus. Based on their Q1 figures, if they keep the same run rate and reach $500 million in sales in 2006, with a 10x sales valuation they should be worth about 32. But who know what the market will price it at. Not sure if I'm going to hold all 5k shares more than 1 day.
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Originally posted by: mjuszczak
So what's everyone's take on this still?

i'm still in for 5k shares. watch the roadshow, it's a solid business model. ex-marketing costs their margins are great and costs are in a downtrend. however i will be levered to buy those 5k shares so i won't be keeping it long (1 or 2 days). I predict +12.5% first day is even money.

Skype was purchased by ebay for $4.1 billion with like ~$70MM in revenue. Vonage is at a run rate of $500MM as of Q1.