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Technology Stocks : IDT *(idtc) following this new issue?*
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To: Hawaii60 who wrote (6317)4/25/1999 8:04:00 AM
From: Condor  Read Replies (1) of 30916
 
Reflecting on the IPO and the resulting share price activities after the event (say two weeks after the IPO ) some thoughts occur to me. If I were the Jonas family with huge holdings in IDTC ( and probably sitting on the board ) I would under any scenario, want to see my interests well served by a spinoff. Since the Jonas's hold much in excess of 5 % of IDTC I would assume they would have to file with SEC in order to sell off their holding of the parent IDTC. Since we are led to believe that the parent Co. may see a weakening of its stock price after a spinoff then the Jonas 's would not get to reap peak value for their holdings because of the time factor delay in SEC filing. Ergo, I would be inclined (if I was Mr. Jonas et al) to be very generous to the parent IDTC shareholders in the distribution of spinoff shares ( eg. 1 for 3 vs. 1 for 10 ). Furthermore, it follows that the resulting float of the new IPO shares available to the marketplace will be scarce and should therefore drive the IPO share price higher immediately after it free trades as dictated by the law of supply and demand. So, in conclusion (ahem), I believe the existing shareholders of IDTC are going to be very well served by this IPO and will have the luxury of holding or selling with little weakness no matter what direction they go. Thoughts from others???
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