Vonage Resists Telecom Stock Rise
On a day when telecom stocks generally went up, Vonage managed to drop more than ten percent. Nyquist Capital is predicting that the class action lawyers are probably already preparing lawsuits.
I’ll be the first to call it - the class-action attorneys are going to try and monetize the Vonage customer class of shareholders that took 13.5% of this deal. Vonage used tactics of a bucket-shop, pitching yours truly by email, voicemail, and snail mail. Fair? No. Reality? Yes.
Seeking Alpha has a round up of other reactions to the Vonage slide.
Telecoms mostly gain, but not Vonage
Vonage - Lipstick on a Pig [Nyquist Capital]
Comments
Love the Class Action. Well deserved as well. Let's see: they run the street pitching this pick of shit to private equity at what? 1-1.5 in a dream. Then the float it with a value close to 2.5. Demand lacking, some genius comes up with the idea of jamming customers with stock. Quite possible without concern for for investment experience, risk tolarence etc. I guess when you are a bullshit internet phone company there is no "know your customer" reg. LOVE it. They will lose business from the customers that got beat, lose cash to the suits (Milberg Weiss was not the only game in town.) Rack it up I'll take it... Yeah they'll get bought, at 3. This belongs in the courts.
Posted by: abe | May 25, 2006 10:51 PM