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

To: DBrian who wrote (10759)	7/8/1999 9:00:00 AM
From: Kevin Podsiadlik	Read Replies (2) \| Respond to of 30916

Well, its not like they gave it away. They are getting 6% interest. So they're not expecting to do better than 6% growth on their money? No, I don't believe that. It's fairly clear, to me anyway, what has happened. Jonas has dipped into the company coffers and given a friend a $25 million personal loan, disguised as a business loan. That, as I see it, is the sole relevent fact here. If this does not bother you, then as the cops used to say, move along, nothing to see here. For the rest of you, here's my view on these conspiracy theories: At the risk of giving the show away, I am going to let you guys in the the real agenda of the short sellers. Mr. P$nk's pronouncements from on high notwithstanding, short sellers know full well IDTC will likely run up in anticipation of the NTOP IPO. In fact they are counting on it. Roughly 1-2 days before the actual event of the IPO is when they will enter their short positions in earnest. They are anticipating that when NTOP starts trading, all interest in IDTC will move there, and IDTC will be easy pickings. I've been there, done this numerous times in my as-yet brief trading career, this works. See DLIA (TURF), DBCC (MKTW), BKS (BNBN), and ZD (ZDZ), just to name four from 1999. However, and this is the catch, if Greenberg's story depresses the price of IDTC prior to the IPO, then that will essentially steal from the size of the IDTC implosion at IPO time. In truth, Greenberg's article, if anything, will reduce short selling profits. If Greenberg really wanted to help short sellers, he would have published his article within a day, before or after, of the NTOP IPO. The double whammy would have decimated IDTC stock, and made even short sellers who didn't know Herb Greenberg from Hank, a lot of extra money.