Everyone knows I love Vonage… so a lot of people have been asking me if I was going to participate in their IPO. Many where shocked to hear me say:
Don’t get me wrong, as a customer, Vonage is awesome… there’s no other phone service I’d ever have. However, this is an investment decision and here’s why I was down on them:
With BIG competition like AT&T’s Call Vantage and Time Warner’s Digital phone – its going to be tough going for Vonage… for the incumbent carriers, VoIP is life or death for them… so they’re not going to down without a serious fight.
At about $17/share – Vonage is saying that they’re worth around $2.5billion. I don’t know about that – especially when you consider that Vonage has never turned a profit.
To me, its clear that Vonage is involving their customers in the IPO because they want to build excitement and demand for their stock… the problem is that 3 days before the closing of the “customer round” they sent out an email reminder that it was “closing soon” and that we’d better hurry up and get our money in… which sounds like they had problems getting people to sign up. So Econ 101 says that when there’s no demand, prices go down.
So what ended up happening? Lets go see…
Shares of Vonage Holdings (VG), the Internet telephone pioneer, dropped in their trading debut Wednesday after pricing late Tuesday at $17 a share, the middle of the expected range.
Shares of Vonage fell $2.31, or 13.6%, to $14.69 in late trading on the New York Stock Exchange.
Successes or failures of employees in the workplace can be traced to what kind of father they had, a psychologist argues in a new book.
In “The Father Factor,” Stephan Poulter lists five styles of fathers — super-achieving, time bomb, passive, absent and compassionate/mentor — who have powerful influences on the careers of their sons and daughters.
One of my favorite quotes in the book talks about how the housing market in San Antonio has dropped 20% in value as of late, but nobody knows it because its typical that people don’t adjust for inflation or for the lower interest rates (which lowers the value of owning a home since it becomes less of a tax-shelter when interest rates drop).