Vonage IPO

Quote from narballs:

i doubt a ch 11. But check this out... This is a statement released by vonage.

The price you will pay in this offering for each share of our common stock will exceed the per share value attributed from our tangible assets less our total liabilities. Therefore, if we distributed our tangible assets to our stockholders following this offering, you would receive less value per share of common stock than you paid in this offering. Assuming an initial public offering price of $17.00 per share (the midpoint of the range set forth on the cover page of this prospectus) the net tangible book value adjusted for the net proceeds of this offering at March 31, 2006 was approximately $433.1 million, or approximately $2.78 per share. Pro forma net tangible book value per share represents the amount of our total consolidated tangible assets less our total consolidated liabilities, divided by the total number of shares of common stock outstanding. Accordingly, if you purchase shares of our common stock in this offering you will suffer immediate dilution of $14.22 per share in pro forma net tangible book value. This dilution is due in large part to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased their shares of our capital stock and the losses we have incurred.
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Thats when the stock was at 17 bucks...its now at 7

Big differance


NO??
 
In my experience virtually every companies . net tangible assets are less than the asking price of thier stocks. See GOOG.

Vonage is a viable company in the long run for my opinion. I currently use Lingo as they offered phones in my area of the country.

My personal suspicion is that vonage is a takeover target supreme. If Verizon or ATT wishes to expand thier market share rapidly this would actually be a pretty good target for them. So I would highly doubt they will ever file chapter 11.
 
Quote from krazykarl:

this company has no value-add over AT&T or comcast. I expect chap. 11 is no more then 4 years out.


-krazy
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4 years?

If they last that long they will never go chap 11.

I say they get bought out real cheap, or fold long before that,
 
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