I don't know why Vonage was hyped to be so great. It was published as being oversubscribed, so I don't know why investors (and some blogs) thought it to be a good deal.
talk about a cock-and-bull (or should i say bear)-story.
Any customer who took the bait and bought, sorry for that, will not get the money back. All tech (in particular phone) stocks are going down the toilet at this moment, and I don't see it getting any better.
Vonage is so old hat, Skype is where it's at.
This post is not a recommendation to buy or sell stock, but purely the express opinion of the author and not of DailyKos or any other publicaton.
Vonage plunges in first day of trading
By Anuj Gangahar, James Politi and Aline van Duyn in New York
Published: May 24 2006 18:58 | Last updated: May 24 2006 18:58
Shares in Vonage, the internet telephone service provider, plunged more than 13 per cent in the company's first day of trading in New York on Wednesday after its $531m initial public offering.
Vonage's IPO was the worst US market debut in more than two years. It followed a sharp correction in US markets this month. The technology-dominated Nasdaq Composite index is down 2.5 per cent for the year.
The market's sharp rebuke for Vonage demonstrated the growing "flight to quality" among global investors, who showed little interest in picking up shares of a company that was still losing money, even though it was operating in a growth sector.