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Technology Stocks : IDT *(idtc) following this new issue?*

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To: Smear_campaign who wrote (11537)7/16/1999 8:41:00 AM
From: orkrious  Read Replies (1) of 30916
 
There are two important items regarding the NTOP, IDTC earnings/valuation.

1. Regardless of the earnings IDTC reports, the value of NTOP will be established by the market. This will be reflected in IDTC's stock price. For ex, if the market values NTOP at $500 mil (I am just picking this number out of thin air), the market will place maybe 40%(IDTC's ownership percentage discounted for illiquidity) of this in IDTC's stock price.

2. IDT will be able to publicly talk about the effective drain of NTOP. Consequently, the Street will be able to see how much IDTC earns without NTOP, and to value it accordingly.

The IDTC stock price will be easily valued as a combination of the two companies, regardless of what IDTC reports.

Jay
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