IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: TED AROESTY who wrote (6978)	2/24/1998 11:19:00 AM
From: Rob S.	Read Replies (1) of 11555

Here's my opinions on recent price action: A major misconception may be that this and other internet boards influence the price of IDTI a lot. I think these boards may influence a stock short-term but if it runs ahead of itself it corrects. IDT has about 44% institutional ownership and when the price moves past the point where the institutions quit buying, like late week when it pushed past 15, the overall momentum is lost. By late morning on Thursday the large block trades had dried up and the market was left to the smaller investors. As a result, volume went down and the pressure to drive up the stock evaporated. Yesterday and today we are seeing the same thing. The price had pushed up to most analysts 12 month targets and there was not enough momentum from small investors to propel IDTI into the stratosphere. Future performance MAY well justify a much higher price, but that expectation is as yet a promise that has yet to be proven. Theere are too many variables to justify pricing IDTI to the upper end of the ranges in expectations. Sure IDT may perform splendidly in which case estimates will be revised upward, but there is no sure bet to be made on the C6, CL, or the general economy. I think investors should be pleased with the perfromance that IDTI and the stock price have shown so far. Its reasonable to anticipate great new developments and a much higher stock price in the future, but its prudent to be patient and wait for the course of things to prove out rather than get too far ahead of the game. I think that IDTI is much less likely to tank as it has in the past. There is nice momentum in new products and greater diversification away from troublesome product areas. The make up of investors has probably also changed - from many who might have looked to "get back to even" to investors with expectations for a long upward ride (maybe a rocky mountain scenic ride).

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