The voice-over-IP telephony company, Vonage, did something interesting for its initial public offering (IPO) last week. They offered long-time customers a chance to get in on the IPO.
As you can see below, customers who went in on the deal may not have received the best investment.
The stock for Vonage (VG) is already down 23%. Their company financials are a little scary. It’s expected that a fairly new company might have net losses for a while, but they’re going to face major competition from telecommunication powerhouses like Verizon (VZ).
A lot of blogs had accurate positions on Vonage prior to its IPO. Seeking Alpha was cautious and pessimistic, and Phil Town was just cautious. MM from PFBlog talked about his possible intentions to take part in the IPO offered to customers and flip the stock. Did he pull the trigger? We’ll have to wait for an update.
The New York Times believes investors will be shorting the stock, believing it to be overvalued, and making money on the drop.
Published or updated May 29, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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