What is going on (or not going on) here?
Maybe IDT is just not used to being part of a publicly traded corporation that has to orient itself to investors and the public. But then, what's the parent company's excuse? Got out of the habit of releasing news during the long pre-merger blackout period? Don't know what IDT is up to?
Yeah, you can say it doesn't matter, the price will catch up to earnings in the long run, and that is right. But aside from decent treatment to the owners (us stockholders), there is a strategic reason for being good with PR. Starting soon, IDX will have to be looking over its shoulder at potential acquirers, and cannot afford to let itself be bought too cheaply in the open market. A nice high price is the best defense against a takeover -- and letting your good news be known and appreciated is one of the better ways of maintaining share price. I don't think they get it yet.
And not so incidentally, given PR failures on the important, new generation scanner (also being shown now at CTST and still not announced) the upgraded software, the Mastercard and Novell alliances -- the real time quote shows a flat trading range of $11.25 to $11.50. Seems too cheap to me, under these circumstances.
Someday PR failures could really cost us. |
