Thursday, May 25, 2006
Vonage IPO - priced just right
Vonage (Symbol VG) had its debut on the markets yesterday and promptly lost nearly 15% of its value.
I'll let market analysts and other folks (like Mark Evans) sort out the implications for the access independent VoIP market, what it means for internet stocks, the root of Vonage's problems and all else that is ailing in the world.
It just seems to me that when a company has its stock jump from $10 to $50 on opening day, that the company got ripped off and the brokers' friendsstole made money that should rightfully have been in the company treasury. If the stock pops, I think it means the underwriters undervalued the company.
The fact that Vonage stock went down means that the company maximized its return. That should stimulate some debate - our lines are open and your comments are welcome.
We'll be hearing Vonage founder Jeff Citron delivering the opening keynote at The Canadian Telecom Summit on June 12.
I'll let market analysts and other folks (like Mark Evans) sort out the implications for the access independent VoIP market, what it means for internet stocks, the root of Vonage's problems and all else that is ailing in the world.
It just seems to me that when a company has its stock jump from $10 to $50 on opening day, that the company got ripped off and the brokers' friends
The fact that Vonage stock went down means that the company maximized its return. That should stimulate some debate - our lines are open and your comments are welcome.
We'll be hearing Vonage founder Jeff Citron delivering the opening keynote at The Canadian Telecom Summit on June 12.
Posted by Mark Goldberg @ 5/25/2006 07:27:00 AM 
Comments:
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The fact that the company sold all the shares means that buyers were willing to pay the $17 price. No one held a gun to the buyers' heads.
My position is that the company has a duty to maximize the yield to the company - not to the people looking for a quick flip. Everyone recognizes the company needs cash for its current burn. If the IPO was priced at $13, the company would have $100M less in the bank.
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My position is that the company has a duty to maximize the yield to the company - not to the people looking for a quick flip. Everyone recognizes the company needs cash for its current burn. If the IPO was priced at $13, the company would have $100M less in the bank.
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Mark Goldberg : 3:00 PM, May 26, 2006
Mark Goldberg : 3:00 PM, May 26, 2006 << Home
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