This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Five Dumbest Things on Wall Street This Week

1. Passing the Hat

Vonage (VG) is coming through loud and clear now.

Shares in the Holmdel, N.J., Internet phone company are down 31% since last week's $531 million initial public offering. Hefty competition from the likes of eBay's (EBAY) Skype has sent investors fleeing. Even Vonage's effort to turn users into owners has boomeranged.

Last month, Vonage, explaining that "much of our success is attributable to our customers," said it would cut the customers in on the IPO. But users haven't had much success with the Customer Directed Share Program.

One woman says she tried to buy 5,000 shares at the IPO, but was told she got none. She checked back later -- after Vonage had dropped 13% in its first day of trading -- to find she was, in fact, the proud owner of 1,300 shares at the IPO price of $22,100. By the time she knew she owned it, though, her stock was worth just $19,305.

"In my mind, I don't own this stock," the customer, Nina Shreiber, told's Jonathan Berr.

Evidently Vonage was of the same mind. In response to complaints, a spokesman told CNBC Tuesday that Vonage would make customers whole on the IPO.

But just a day later, after legal experts scoffed at the plan, Vonage decided to stick customers with the bill instead.

"To be clear," Vonage said Wednesday night, "we have not offered, and are not offering, to repurchase any of the shares of common stock from our customers."

When it comes to looking out for its customers, Vonage is all talk.

Dumb-o-Meter score: 93. We'll just sit out the Internet-phone revolution, thanks.

To view Colin Barr's video take on Vonage's entry in Five Dumbest this week, click here .

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs