Howard, your point makes perfect sense. However, Internet stocks do not. Witness the latest NTOP run in which IDTC could not break $32 range, even though value of NTOP stock alone should have had it near $60 range.
Thus, if gains are to be made, they will be found in NTOP for the near term. Why? It appears the market will not attribute full value of NTOP holdings to IDTC. In our opinion, NTOP would need to establish itself in both stock performance and business model before IDTC can approach the $40 range.
Given this fact, shorting NTOP to acquire IDTC would be a risky move. Again, your logic makes perfect sense...but Internet stocks do not.
If there is one advantage to holding IDTC at current levels, it is that downside is limited to $17 range, whereas NTOP can theoretically drop much farther on a % basis.
This is our opinion and would like to hear those of others. Though we feel comfortable in our assessment, this is by no means the "end all" analysis.
Regards,
AGORA
agoracom.com |
