Chances of a VG Buyout and Who are the Candidates?
In just under 2 years I'm down over 50% from about $5.22 to what, about $2.40 today! And I don't see any market drivers to break us out of this. If there were any, we'd have climbed this last year, and even this during this January rise - nothing! I hate to bash my own investment but what a dud!
I'm not VOIP or phone tech or even user savey investor but I'm in this fix and wondering how we get out of it. First thing that comes to my mind is a Buyout. What are our chances of this happening any time soon and who might be the interested candidates?
You wish. The chances of buyout: slim and none.
AT&T = not interested.
Verizon = not interested.
Sprint = not interested.
FB = not interested.
Poison Pill. There is a great message by YMB contributor Voltedges from a few days ago which discusses the NOL carryforward tax rules which functions to prevent a buyout.
There's a great message by a writer named "poke104comma1" also has a great discussion of why the buyout wont happen. It begins, "Vonage is damaged goods-- worse than a dud."
There are many better companies if you are looking for a buyout candidate.
If you think Vonage will be the one, you have waited many, many years with bated breath and still it wont happen. We are not even back to 20% of the IPO price. Vonage churn is massive. If they did not advertise, the numbers would quickly dwindle. This is an expensive operation to run. The management is lousy and lazy, as are the middle managers too. The whole operation is a disaster. No one wants it.
Thank you for taking the time to provide your detailed answer/opinion. I did not invest in VG because I thought it might be a Buyout candidate and to date I certainly haven't "waited many, many years with bated breath" just for a buyout. I originally got in to have a VOIP play and remain here because I'm down over 50% and not willing to take the loss.
May I ask your current position as a shareholder in VG? How many shares do you currently own, Long or Short, or Options?