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Produced in America where we don't get it right but at least there are 300 million of U.S.

Monday, May 08, 2006

Vonage IPO Breakfast of Idiots

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Do not get tricked by your stock broker into buyer this junk. No company should ever be allowed to IPO unless they are making money and have been doing so for at least a two year period. This IPO is a bad investment. Read the fine print.

Vonage Holdings, moved to become the first major Internet telephony player to go public by filing Wednesday to raise up to $250 million via an initial offering of stock and named a Tyco International executive as CEO. Our revenues were $18.7million in 2003, $79.7million in 2004, and $174.0 million for the nine months ended Sept. 30, 2005," the company's prospectus says."While our revenues have grown rapidly, we have experienced increasing net losses, primarily driven by our increase in marketing expenses. From the period of inception through Sept.30, 2005, our cumulative net loss was $310 million. Our net loss for the nine months ended Sept.30, 2005, was $189.6million. During the same nine-month period, our marketing expenses were $176.3million."

So where is the proposed $250 million going to be spent? At they rate they company is going through cash the IPO will produce enough to make the founders richer and that is about all.

So what does the future hold for Vonage? Hmmmm I think the Sale of Vonage is already done & done. The Borg will come along paying some stupid amount that will cover the major investors off then Vonage will become the property of a Telco or Cable company.

Toodles.