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Is Vonage Still Screwed Despite Screwing Customer-Investors?

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We mentioned it this morning, but now you can read Charlies Gasparino's report on Vonage straight from the source. Shortly before 1 PM it got posted to the SquawkBlog. Charlie spells out a few additional points that are worth noting, especially the lack of any hard numbers.

Most analysts, however, are unimpressed. What is unclear is exactly how much money these customers have actually paid. Remember, the company set aside 13.5% of its IPO for its own customers. It's unclear if the 60% to 70% represents all the customers who bought the shares -around 10,000-or the total amount of stock set aside in the DSP program. A company spokeswoman declined to provide more details until the release of second-quarter earnings, but its conceivable that most of the DSP remains uncollected even if most of the 10,000 participants paid up.
One thing is certain: Vonage's problems go beyond its problems convincing customers to pay $17 a share for a stock now trading under $7. Competition is growing while the company loses money and patent disputes are eating into the company's bottom line. Meanwhile, the company faces a number of class action lawsuits over its disastrous IPO. One lawsuit, filed by Motley Rice alleges, "both the Company [Vonage] and Company insiders...embarked on an illegal course of conduct to sell shares of the Company in a public market."

And here’s another follow up question. Does the sixty to seventy percent figure reflect sixty to seventy percent of the shares bought by customers, or just sixty to seventy percent of customers ordering shares? If customers did not evenly buy shares, the two numbers could be very different. If six out of ten customers bought just a few hundred shares each, and the remaining four out of ten bought lots of shares, Vonage could still be left with a significant shortfall from its IPO.

Vonage: Sign Up...Pay Up?