Paul et al.
I think we've had some real downside resistance the last couple of days. Yesterday, we had a 10% dropoff and it recovered and today, though quiet, advanced.
The recent lows are a matter of concern to me but it's part of the bigger picture, I think. If we have the IPO in the wings, we either get one announcement per week between now and then, meaning we (a) go through the same cycle of 1) announcement, 2) euphoria, 3) confusion/scepticism and 4) selloff or (b) Frank releases them all within weeks of the IPO. If (a) is the strategy, more investors discover the art of flipping and we get more fluctuation (meaning lower lows, and not necessarily higher highs).
Flippers may not make as much money with the all or none approach but investment bankers may not be willing to support the Tempest unless they know the public sees the difference between Net2Phone and the Tempest. If this is a chess game, you don't want Frank to try to checkmate with just a knight. Nor will one announcement sum up the Tempest. There's at least three major types of business that one can pursue profitting from the Tempest, and differing residual profits for FNet in each case. Hit our underwriters with a complete frontal assault. Strategically, it also pays to distance ourselves from IDT's Net2Phone. Sure it moved them from $4.25 - $20 but the Tempest ain't Net2Phone either. If underwriters understand the differences, everyone will be happier.
WH
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