Vonage IPO takes a dip

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Actually, the market determines who's right

I'm a Vonage customer and a trader. As much as I love Vonage (and there is a lot to love about it), that doesn't mean I have to contribute capital to their growth. As I write this, I'm watching "VG" tick downward on my Bloomberg to $15 a share. Obviously, the buyers & sellers have decided that this is where the stock should trade...and it's tough to argue with the market.

It's not good when a new stock falls 12% immediately following their IPO. Before we start deriding the "Idiots & Windbags" who were pessimistic about Vonage, keep in mind that these analysts eat, sleep, and breathe the companies that they cover. I don't spend 12 hours a day analyzing the industry structure, comparing growth prospects, building models, participating in conference calls with Vonage management, etc...but it's tough to argue with the guys that do.

Of course, I can understand why iwis@ is a little testy, having lost $600 on his $5000 investment in all of 4 hours.

Personally, I think that the minute TimeWarner, Comcast, and/or Viacom come out with a well-priced, bundled internet, phone, and cable service, Vonage & others will simply cease to be a factor. First to market doesn't mean profitable. Maybe iwis@ can recoup some of his $5100 when VN is acquired by one of the big providers.

Posted by: Sweller   Posted on: 05/24/06 You are currently: a Guest | Members login | Terms of Use

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