comments
Vonage IPO Starts To Get Ugly
Email
 Print
|
So Vonage IPO’d last week, promptly tanked, and now sits at 30% under its debut. -30.0% is an ugly ugly thing to see on your stock portfolio tracker screen… so much so that some of Vonage’s customers who participated in their Directed Shares program (where customers can purchase shares) may be having second thoughts. That led Vonage spokeswoman Brooke Schulz to state “If the customer that was allocated shares chooses not to pay, they are taking a risk because we are reserving our right against them to pursue payment.” That means they’re going to sue you. The company is going to sue the customers who, wrongfully, don’t feel like paying up.
If you jumped on the Directed Shares program and purchased the full 5,000 shares you were permitted, you have lost $24,900 (IPO’d at $17, sits all chopped up at $12.02 as of this writing) in a week. That and now your phone company is going to come after you for the money. While that’s a tough thing to swallow, it doesn’t give you the right to renege on an agreement.
This thing is going to get uglier and I doubt you’ll see many “Directed Shares” type IPO deals in the future where a company sells its own shares to its customers.
{ 1 comments, please add your thoughts now! }
Related Posts
 By Jim |
 Stumble It! Bookmark reddit.comTags: Jun 01, 2006 | Read more in Investing |
Like this article? Get all the latest articles sent to your email for free every day. Enter your email address and click "Subscribe." Your email will only be used for this daily subscription and you can unsubscribe anytime.
This is what happens when you market an IPO to people who normally wouldn’t have paid attention to it at all, in an attempt to generate buzz. Oh, and you didn’t get paid first!