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Vonage going IPO
Diashto writes "I just recieved voicemail on my Vonage phone saying that Vonage is going IPO, and that certain customers may be eligible to purchase common stock at IPO pricing. More information is is available on their IPO site."
To raise money for the new "SO you want to actually GET THROUGH to customers on our cablemodems" tariff which is upcoming.
I'm a fiscal conservative, it's a pity we don't have a political party anymore
about my long lost uncle who used to work for the oil companies in central Africa. He apparently left me $5 million and all I need to do is contact his Nigerian legal representation.
- and
phone number. Regardless, I think this is better than most IPOs who only offer to the elite brokerage houses, and better than Google where it was anyone's game. Offer to those who have a history of support.I'm a Vonage customer since 2004 and I received the IPO e-mail a few days ago. If you're in the same boat I highly recommend reading their risk prospectus first. They will be posting losses for the foreseeable future.
Not a deal-breaker but just a heads up.
Four weeks, Twenty papers, that's two dollars
The site is registered to the same entity that holds the main Vonage.com registration and it doesn't (currently) say anything about buying the domain. Maybe you hit it right at the start before they shut off domain parking.
ZDNet blog on why the email/phone pitch is a wrong strategy: http://blogs.zdnet.com/ip-telephony/?p=1086
Now people say most people already have broadband so I shouldnt count that in the cost but in that case why shouldnt I just use Skype which is free ? Charging a monthly fee basically for providing a handset is definitely a scam.
I see you were modded a troll, but I'll just assume you don't know what Vontage is. Skype is free. This applies only if you call another Skype user.
What you get for the fee is nationwide calling to regular telephones. Skype out and Skype in are not free. Please compare apples to apples. Vontage includes most of the extras you would get with a phone plan including caller ID, 3 way calling, etc.
The truth shall set you free!
Vonage is indeed doing an IPO and they announced a few days ago that US customers are eligible to buy in. However, the site linked in this story looks like a phishing scam.
So long, and thanks for all the Phish
I was skeptical too. I checked their domain registration and it matches up with vonage.com. Also, when you enter your account number it successfully looks up your account information, a phishing scam wouldn't be able to do that.
It certainly appears legit, here's the registrar information:
.com and .net domains can now be registered
Whois Server Version 1.3
Domain names in the
with many different competing registrars. Go to http://www.internic.net/
for detailed information.
Domain Name: VONAGEIPO.COM
Registrar: NETWORK SOLUTIONS, LLC.
Whois Server: whois.networksolutions.com
Referral URL: http://www.networksolutions.com/
Name Server: DNS1-NYC.VONAGE.NET
Name Server: AUTH00.KEWR0.S.VONAGENETWORKS.NET
Name Server: AUTH01.KEWR0.S.VONAGENETWORKS.NET
Status: REGISTRAR-LOCK
Updated Date: 08-may-2006
Creation Date: 25-apr-2005
Expiration Date: 25-apr-2012
think before you write, it'll save me moderator points.
If you gave them your username and password there is no reason why they would not be able to pass that info on to vonage and relay the info back. Unlikely, but possible.
JOhn
Campaign for Liberty
http://rapidshare.de/files/20104039/vonageipoinfo. wav.html
Think this will work.. the wav of the voicemail recieved.
If you ever reach total enlightenment while drinking beer, I bet it makes beer shoot out your nose.
Not only are you a troll, you don't know what you're talking about. Skype does not equal Vonage.
Skype is free only for computer to computer calls.
Skype charges 1.7 Euro cents per minute (about 2 US cents) for calls to real phone numbers. And you have purchase that time in advance in blocks of 10 Euros.
If you want to get a real phone number you have to get SkypeIn, which is 30 Euros per year.
Skype can't be used for 911 at all, while Vonage is working on it and has gotten it together in many locales.
All Skype phones plug in only to a computer, not a cable modem.
Yes, Skype is a bargain and I use SkypeOut myself to call a friend in Australia but Vonage it ain't.
That having been said I think Sunrocket is a better deal. $199 a year, they give you the phone, and you don't have to keep your computer on 24/7. Also, you can hack it so you that you can use your home's existing phone wiring to plug in more phones.
Insert witty sig here.
Their SEC filings are here.
A story on it over at VoIP Magazine is here.
Their (not yet active) trading charts can be found here under the symbol "VG".
If this is a fishing scam, it's a pretty darn good one. More likely, Vonage wanted their financial issues to be separate from their marketing site and didn't think about how that would look.
Javascript + Nintendo DSi = DSiCade
>whois vonageipo.com
Registrant:
vonage holdings
23 Main Street
Holmdel, NJ 07733
US
Domain Name: VONAGEIPO.COM
Administrative Contact, Technical Contact:
vonage holdings itadmin@vonage.com
23 Main Street
Holmdel, NJ 07733
US
732-365-2603
Record expires on 25-Apr-2012.
Record created on 20-Feb-2006.
Database last updated on 10-May-2006 10:08:55 EDT.
Domain servers in listed order:
DNS1-NYC.VONAGE.NET 216.115.31.140
AUTH00.KEWR0.S.VONAGENETWORKS.NET 69.59.252.42
AUTH01.KEWR0.S.VONAGENETWORKS.NET 216.115.30.40
>whois vonage.com
vonage holdings
23 Main Street
Holmdel, NJ 07733
US
Domain Name: VONAGE.COM
Administrative Contact, Technical Contact:
Holdings, Vonage itadmin@vonage.com
Vonage
23 Main Street
Holmdel, NJ 07733
US
732-365-2603
Record expires on 12-Dec-2008.
Record created on 12-Dec-2000.
Database last updated on 10-May-2006 10:09:41 EDT.
Domain servers in listed order:
DNS1-NYC.VONAGE.NET 216.115.31.140
AUTH00.KEWR0.S.VONAGENETWORKS.NET 69.59.252.42
AUTH01.KEWR0.S.VONAGENETWORKS.NET 216.115.30.40
Amazing... Admin contact and DNS servers are the same...
Developers: We can use your help.
Worked fine with Firefox. Just had one 'next' box that I had to scroll to the right to find.
Or, if you call Vonage and ask for information, they point you to the site and the phone number. Pretty nifty that they managed to fool Vonage's own tech support.
http://www.sec.gov/Archives/edgar/data/1272830/000 104746906006601/a2169686zs-1a.htm
The past background of our founder, Chairman and Chief Strategist, Jeffrey A. Citron, may adversely affect our ability to enter into business relationships and may have other adverse effects on our business.
Prior to joining Vonage, Mr. Citron was associated with Datek Securities Corporation and Datek Online Holdings Corp., including as an employee of, and consultant for, Datek Securities and, later, as one of the principal executive officers and largest stockholders of Datek Online. Datek Online, which was formed in early 1998 following a reorganization of the Datek business, was a large online brokerage firm. Datek Securities was a registered broker-dealer that engaged in a number of businesses, including proprietary trading and order execution services. During a portion of the time Mr. Citron was associated with Datek Securities, the SEC alleged that Datek Securities, Mr. Citron and other individuals participated in an extensive fraudulent scheme involving improper use of the Nasdaq Stock Market's Small Order Execution System, or SOES. Datek Securities (through its successor iCapital Markets LLC), Mr. Citron and other individuals entered into settlements with the SEC in 2002 and 2003, which resulted in extensive fines, bans from future association with securities brokers or dealers and enjoinments against future violations of certain U.S. securities laws. The NASD previously had imposed disciplinary action against Datek Securities, Mr. Citron and other individuals in connection with alleged violations of the rules and regulations regarding the SOES. These and other matters are discussed under "Information Concerning our Founder, Chairman and Chief Strategist."
There is a risk that some third parties will not do business with us, that some prospective investors will not purchase our securities or that some customers may be wary of signing up for service with us as a result of allegations against Mr. Citron and his past SEC and NASD settlements. We believe that some financial institutions and accounting firms have declined to enter into business relationships with us in the past, at least in part because of these matters. Other institutions and potential business associates may not be able to do business with us because of internal policies that restrict associations with individuals who have entered into SEC and NASD settlements. While we believe that these matters have not had a material impact on our business, they may have a greater impact on us when we become a public company, including by adversely affecting our ability to enter into commercial relationships with third parties that we need to effectively and competitively grow our business. Further, should Mr. Citron in the future be accused of, or be shown to have engaged in, additional improper or illegal activities, the impact of those accusations or the potential penalties from such activities could be exacerbated because of the matters discussed above. If any of these risks were to be realized, there could be a material adverse effect on our business or the market price of our common stock.
I got the offer from Vonage, too, and I'm debating it. I haven't done the research on it yet. However, it's a common misconception that companies that are experiencing explosive growth should be rolling in the cash. Rapid growth is actually quite expensive, because the company is having to dramatically increase its size in order to keep pace.
Secondly, debt is not necessarily a bad thing for businesses; in fact, it's a positive. I won't go into all the details, but suffice to say that it increases the earning power of the money supplied by the shareholders.
Third, debt is a much cheaper form of financing than equity offerings. It's only natural to expect Vonage to use as much debt as is available to them before they launch an IPO. Think of this, also -- with an IPO, the current Vonage stakeholders are giving up a lot of control over their company. So really, the fact that they are conducting an IPO should really raise more questions than the fact that they have a lot of debt.
They do not require you to enter your password, they just require your account number, name and zip code. It will tell you if you are eligible and give you your name, a phising scam couldn't figure out your name this way.
How could anyone call this a phishing scam? Not only that but what does someone have to gain from accessing your vonage account? They get to see who you've called? You can't add services or lines without entering some personal information that the phisher wouldn't be privileged to.
I emailed support@vonage.com yesterday, and they confirmed that vonageipo.com is their site;this is not a scam.
However, they should never have sent out email with a link to a site other than their own.
-There's no way to verify through whois records that the site is legit
-Best you could do is if the whois has a DNS server listed on vonage.com's domain
-Their dns servers are not authoritative for the domain
-It would not be hard to net scan for vonage SIP phone adaptors, then connect to them to leave voicemail faking out the CID to look as if it where from "system"
In today's world of phishing scams, shame on Vonage for not being vigilant. This just encourages users to fall for phishing ploys.
The Prospectus and Risk Factors have some interesting tidbits:
1. Their CEO (and top officers) have 6 digit salaries with bonuses that are larger than the actual salary
2. In order to succeed (in their words) Vonage will need consumers to move away from traditional phone lines in favor of Vonage. [Without E911, this is be VERY difficult indeed - and the telcos are not likely to willingly give up their business by giving Vonage access to their E911 systems...even if the FCC says they have to.]
3. In order to succeed (in their words) Vonage needs their competitors to *not* come up with products as good as or better than Vonage's own product. [While this seems intuitive, just think how long it will be - if digital phone takes off (#2 above) - before the cable companies offer equivalent or better offerings with guaranteed QoS for their digital phone service]
I also am not going to take this offer for two reasons:
1. I have to buy at least $100 shares which is more than I can afford at the moment, and
2. I think the price will go down after the first day or two.
...and that's the way the cookie crumbles.
- Free call from anywhere in the world to home/Vonage phones if you can get Internet access, for $6/month (softphone). 500 minutes anywhere else. I used this in Inda for a month, big savings. I also use it when I travel, there are still occasional places where I am charged roaming fees and I hate the surprise when I get my bill, even if I do charge it back to my company.
- Local phone numbers so your mother/father/daughter/son/etc can call without having a long distance charge. Or 800 numbers.
- For that matter, several phone numbers for one phone.
- Fax service. Some people, notably real estate agents and lawyers, still need fax because they need real signatures, not electronic ones.
- Several phones in the house. I have 4 phones, one in the living room, one in the kitchen, one in my bedroom, and one out by the pool. I don't have to carry my cell phone everywhere, especially around the pool. I don't mind accidentally dropping a $20 cordless in the pool as much as my cell.
- Kids
... a ladyfriend's daughter spends thousands of minutes a month talking to her friends in another state.
- Bad cell phone coverage at home
It's not for everyone, but for those that need certain features, it's a lot more economical, convienent, and easy to use than anything else. If I was single with parents that had money and decent cell phone coverage at home and never traveled, I wouldn't have it either. But for $30/month, it is saving me more money than it is costing me. A 60 min. call from India to home paid for my Vonage for 3 months.I rarely read replies, it's my opinion and if you thought about your opinion a little more, I'm OK with that.
The prospectus should be enough to convince all but the most adamant conspiracy theorists that this isn't a hoax.
... until it wasn't.
As for "scam", well, has it occurred to no one else that some scams are "legal"?
Everyone's talking about the financials, the financials, the financials.
What about the people, the people, the people? Specifically: Jeffrey A. Citron, Vonage's founder, chairman and chief strategist seems to have been a very naughty boy in a previous life.
( INFORMATION CONCERNING OUR FOUNDER, CHAIRMAN AND CHIEF STRATEGIST ) Hopefully, this bookmark will take you to the exact point in the lengthy document (just about all of which is "fine print") that details a younger Jeffrey's pattern of behavior.
I'll excerpt here:
"During a portion of the time that Mr. Citron was associated with Datek Securities, the SEC alleged that Datek Securities, Mr. Maschler, Mr. Citron and certain other individuals participated in an extensive fraudulent scheme involving improper use of the Nasdaq Stock Market's Small Order Execution System, or SOES."
"The SEC alleged that Mr. Citron and the other defendants accessed the SOES system to execute millions of unlawful proprietary trades, generating tens of millions of dollars in illegal profits."
"To settle the charges, Mr. Maschler, Mr. Citron and the other individuals paid $70 million in civil penalties and disgorgements of profits, of which Mr. Citron paid $22.5 million in civil penalties. These fines were among the largest fines ever collected by the SEC against individuals."
But, maybe there's not too much risk going forward, because:
"In addition, Mr. Citron was enjoined from future violations of certain provisions of the U.S. securities laws, including the antifraud provisions set forth in Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated under the Exchange Act."
So, that means that he promised never to do it again, and we can take that to the bank, right?
Enron was all legal
I'm a very satisfied Vonage customer and would probably have chosen to invest, until I saw this information. Would you invest in Kenneth Lay's next venture?
I'm not sure yet what this means to me as a customer. At the very least, I'll be researching my exit strategy and appreciate the various references to Skype and other alternatives.
What's more, the company is ripe for a pump & dump. He has an immense interest in going public, getting the stock value up in the air, then selling out. Hell, he actually had a profit holding company named Treasure Solutions in Florida and an offshore trust.
Again, from the SEC filing,
"Jeffrey A. Citron, our principal stockholder, founder, Chairman and Chief Strategist, will own 48,427,617 shares of common stock, or 31% of our common stock."
More detail about the fraud he conducted.
Pay careful attention to the following quote. The guy is into illegal profiteering:
("NASD") rules restricted use of the SOES system to small retail customer orders and prohibited broker dealers from using SOES to trade for their own accounts. By fraudulent means, defendants Sheldon Maschler, Citron, McCarty, Erik Maschler, and Heartland used the SOES system to execute millions of proprietary trades, resulting in tens of millions of dollars in illegal profits. The great majority of these profits were paid to Sheldon Maschler and Citron, but other defendants profited as well. The fraudulent scheme was carefully planned and orchestrated, and was concealed from regulators through the use of sophisticated software, the creation of nominee accounts and fictitious books and records, and the filing of false reports with the Commission. Defendants Sheldon Maschler, Citron, McCarty, and Erik Maschler carried out the fraudulent scheme from 1993 to March 1998 while in control of Datek Securities. Defendants Sheldon Maschler, McCarty, and Erik Maschler carried out the scheme from April 1998 through June 2001 while in control of Heartland, which had purchased Datek Securities' day-trading business on March 30, 1998. Defendant Raft Investments, Inc. ("Raft") aided and abetted the SOES fraudulent scheme.
You are checking your backups, aren't you?