the share price dropped below approx. cash value (8), short covering, the share price moves up, some people may go long not wanting to miss that, the market sank everywhere, but idt's share price was rising, more piled in seeing the %gains when the rest of the market sold off to an extreme level, perhaps a fund got some shares (there is one that came in at approx. $11.50 earlier and it overleverages some positions, then the pile-in stops, short selling starts, that piles up ... and people sell seeing the sell back.
all of that also works; the minimum explanation needed to fit the actual market. also, while idt will have costs from layoffs last quarter (which may last two quarters), and the $15 million lawsuit idt lost on appeal (where the plaintiffs may go after more money [jonas hand wrote a binding legal contract, and the plaintiffs didn't completely perform, but jonas wrote that the agreement was 'binding' in his own hand], .. the stabilizer has been the perceived cash held by idt ....
idt said it expects calling card losses to moderate, but the company has to actually produce that outcome.
(i don't actually expect idt bought shares, but the share buyback option is there .. however, that reduces cash held by idt. i imagine for a moment there idt was relieved the share price rose back up .... and idt gets to play with the $10s a second time.)
**
anything else would have to be treated as unknown ... but not games. if idt's % share price rise is the only thing that lights up the board ... there are a lot of traders out there looking for something to do .. sort of ironic.
i will note that when ntop had its secondary where that price was $4.50, when the share price was actually at $6-$7, there was a reversal back up, which took out the shorts. of course, there was more impetus, interest. there will be some sort of wash back ..., but as idt doesn't have that much interest based on its own actions ... it may just ebb in place. there is resistance back at the level of cash. a real irony, and something to keep in mind, is any institutional sale ... as they are all under water ...
sort of like yahoo selling ntop shares, and idt never stepping in ... we know how that turned out. however, idt
generates cash ... a lot of it in a relative sense. just no interesting growth. |
