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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: steve host who wrote (9784)	6/22/1999 11:30:00 PM
From: Peter Yang	Respond to of 30916

The whole Tech sector was under water today. QWST had a similar sell-off before the close. PGEX was down over $3 too. After the ran up in last week, a little profit taking in a down market is not very surprising. From posts by Pinky and his followers, I can see the logic for you to short IDTC: Net2Phone is the core of IDTC and IDTC depends on Net2Phone to survive. However, the technology for Net2Phone is not quite working and the competition is so fierce. Therefore, the future for Net2Phone is not promising and the IPO's success is questionable. Then, Pinkies draw the conclusion that IDTC is a good short. The major flaw of that logic is: First, Net2Phone is not the core business of IDTC. It has been a drag on IDTC's performance. The IPO would benefit IDTC in two aspects: increase in earnings and increase in the intrinsic value of IDTC because of the 66% ownership of NTOP. Second, the core business of IDTC is the telecom and it grows over 100% annually. Finally, The value of IDTC's Internet Division is not priced in the current price and the current aggressive expanding of this division will eventually increase IDTC's value as well.