Vonage IPO Funny Business, Or Buyer's Remorse?
from the gordon-gekko-never-got-treated-like-this dept
Vonage’s IPO earlier this week tanked, posting the worst first-day decline for a stock since 2004. In addition to the company’s ongoing business challenges, the stock drop also raises the possibility of shareholder lawsuits becoming another headache for the company. The company already got dinged for a minor technical violation in the IPO spam it sent its customers, but now, there’s a minor uproar on some Vonage message boards regarding the allocation of shares. Some users report that the Vonage IPO web site showed that they weren’t allocated any shares, only to check back after the stock nose-dived to find they had been sold shares. One rather vociferous poster who claims to have been allocated 1300 shares after initially being told on the site they gotten none, says they would have “watched the market” had they known they owned the shares and “maybe” would have chosen to sell. It’s unclear what’s really happened here, as the posters complaining of the problem say they’re waiting to hear back from their brokers for any resolution. It’s hard to imagine that given the attention this IPO received and the company founder’s history with the SEC that it would intentionally get up to any shenanigans. With the way the stock has fallen, one almost can’t help but wonder if these people simply trying to back out of a bad investment. The IPO craze of the last dot-com bubble fuelled the idea that any initial public offering (particularly of a tech company) means a huge first-day pop and the chance to turn a quick buck — something that isn’t always the case. Add in the fact that you have people investing based on that misinformed viewpoint and their experience as customers, rather than any investment insight, and it’s not hard to see how some might be feeling their fingers burned.