Hi Bill!
When VocalTec hit over 30 and then took a dive it was reported to me by an Israeli financier that insiders and members of the firm had taken a profit. Apparently this was common knowledge, and no big secret. If this is so, it would substantiate your suggestion that VocalTec stock may be subject to manipultation. Since it is an Israeli company I do not know whether manipulation by insiders or management is illegal, as it is in this country. However, I have enormous confidence in the integrity of VocalTec's management. I am confident they would abide by their rules whatever they are.
Bill, since I am not a trader on a random walk, what stock manipulators do is of no interest to me. I am influenced by what Shlomi Cohen said in the following excerpt from a recent Head to Head article in Globes:
Monday , Mar 9, 1998 Sun-Thu at 18:00 (GMT+3)
Head To Head
Internet Casino
By Shlomi Cohen
There is enormous importance attached to being
a leading player in Internet related niches in this
amazing communications revolution. I estimate
that there are currently three Israeli companies
that have taken a major role in such niches:
Gilat, in the field of data transmission (Internet)
and satellite telephone communications;
VocalTec, in data and telephone (voice)
networks based on a completely new
technology called "IP" (based on Internet
communication protocols); and Orckit (ORCTF),
in XDSL, which is supposed to solve the
problem of congestion on the network.
At the moment, the three companies face a
promising future. I would not be surprised if all of
them (or some of them) are swallowed up by
giant US technology companies, at prices far
above the prices at which they are traded today.
The moment the giant companies recognize that
a technological change is about to take place,
they won't have the time or the desire to develop
a competitive or alternative technology
themselves. They prefer to pay apparently
exaggerated prices, just to have the right
technology at the right time.
If I had to rank the three Israeli companies
according to which will be the first to get a take
over offer that cannot be refused, I would choose
VocalTec, then Orckit and finally Gilat Satellite
Networks.
Bill, I own all three of these stocks. Please note which stock Shlomi ranks as number one. Coming from someone who is as highly regarded as Shlomi Cohen, regardless of the traders and manipulators, you couldn't get me to part with VocalTec, Orckit or Gilat for love or money. Incidentally, Bill, whether Wall Street has opened its eyes or not, I have enormous confidence in Israeli stocks, at least as much as those in the US.
Kindest regards,
Don Walster |
