All,
If you are like me you own a ton of IDTC, and perhaps additional May Call options as well. Last night, like myself, you must have contemplated what to do with your options today before they expire. Why it was only just Tuesday evening that you prided yourself on your stock picking prowess. After all, you had not only invested in a company that would spin-off, what will prove to be the hottest IPO of the year, but you even got the timing right. You had accurately forecast the IPO spin-off would be announced prior to your May, in the money Calls, expiring, and because you had done your DD well, you were even able to predict two of the three partners that IDT would take for their NTOP IPO. The third GE Cap., could only be considered a pleasant surprise, but you deserved it, after all you had worked hard researching your IDT investment.
Like me, you know how valuable the leader in Voice over Internet will be to Telcos wishing to get into the long distance business. You know the impressive list of partners featuring Net2Phone on their Web sites. You have actually used P2P and was impressed with the service, You even know about the switch IDT has developed, (which few others are aware of)... But most of all you are impressed with IDTs ability to grow revenues. Not only in these early stages of development, but you are confident that this can only accelerate into the future.
So, if you were like me, you felt cheated last night. You were angry at the way IDTC has traded in the last two days. You don't know how they did it, but you are sure the MMs are screwing us. How were they able to get this gem of a company to trade at a price below that which it traded at before the IPO was announced? Unbelievable! Was it the weak hands selling who were disappointed by not getting NTOP IPO shares allocated to them? Was it, as David Brainson had suggested, investors "cutting off their nose to spite their face"? No I don't think so... Perhaps some, but this has to be a more coordinated effort by MM, Shorts and other players who want to get IDTs price lower before the May options expire.
Well, I for one will not let them get away with stealing my options cheap. If need be, I will exercise my in the money options this afternoon. I will buy the stock and wait for the Road Show with the promise of a better time to sell some of these additional shares. I am convinced though, this company has a huge up-side potential, and a year from now,IDTC will be selling for a much higher price than the $25/share that I can buy them for today.
I would like to believe that their are many of you out there that have come to the same conclusion as me. Perhaps this time, instead of the MMs having control over our investments, the power of the Internet will prevail. Hopefully this post might influence others to take a similar course of action, and the shorts and MMs can be made to pay a fair value for our investment.
Jules
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