Vonage says, Refund? Refund?

“Refund?! Refund? Refund?! Refund! Refund?”

Breaking Away (1979)

I’m not sure any more who looks worse, Vonage or its retail buyers, in this refund issue with respect to its recent IPO allocation. It’s easy to root for the little guy and against Vonage, but these greedy, would-be IPO buyers knew what they were getting themselves into.


  1. Paul:
    I strongley disagree with retail investors knew what they were getting themselves into. I believe that the vast majority of retail investors purchase individual stocks based on the company’s product and not its financials, which means they have no concept of whether or not a stock is expensive or cheap and rely only on their like and/or use the company’s product. In this case there is a lot of buzz about VOIP and I bet most retail investors had no idea how competitive the market is or how far away from break even Vonage is.

  2. Andrew,

    Sure, most customers don’t know how to read an S-1, but in this case all you had to do was Google Vonage  IPO and see tons of negative analysis, in simple, plain language.

    Besides, how informed the retail investors were is irrelevant: they made an investment decision, at a minimum they knew that investments are not guaranteed to be risk-free, there is no such thing as buyer’s remorse on the stock market.