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Technology Stocks : IDT *(idtc) following this new issue?*
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To: Spartsker who wrote (8139)5/20/1999 11:03:00 PM
From: Internet Jones  Read Replies (1) of 30916
 
If the IPO prices at $X per share, then the Market Makers trade it back and forth at $X * 3 on day one. This results in a market cap of $1 billion on day one of the IPO. IDTC owns 66% of this $1 billion value. Thus IDTC owns an asset worth $660 million. With IDTC at $30 per share, its market cap yesterday morning was $990 million. So the new $660 million asset will increase its market cap by two-thirds.

IDTC's revenue is about an annual run rate of $640 million per year, growing at about 120% per year. The market cap you assert values the company at about one times sales, pretty cheap for an Internet company growing more than 100% a year.

Of course, the company is profitable.

Net2Phone's icon on the AOL desktop will reach 18 million customers, day one.

No announcement yet from Yahoo or others about using Net2Phone or PC2PC.
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