Frank Barnako

  • I'm a journalist.

    Since 'relaxing' from MarketWatch.com, I have rekindled my interest in photography.

    E-mail me.

Coming Soon

  • Vintage Vegas
  • Paris
  • Meandering in Maine
  • Drive-in Memories

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Dude, you should get you some of those shares before they come public. I wish I could get in on the deal.

If there is no restriction on selling the stock then I think it would be a good buy and sell on the run up. If restricted for a period of time I would pass on it.
I have made the switch from regular telephone to Vonage and have not had any problem, so far.

Of course you should buy/take part in the ipo, the public rarely gets to participate, just don't hold the shares too long.

According to the Vonage website, the shares can be sold immediately after you have purchased them.

Short Vonage as soon as they come out.

Why?

Expected Profit per sub = $20/Mo * 20 months * 40% marketing contribution profit margin - $225 acquisition cost = - $65 per sub.

And thats without G&A and overhead added, and NPV on the revenue stream given their churn rate which is more a function of the underlying DSL or Cable Provider.

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