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

To: Herschel Rubin who wrote (16349)	11/5/1999 4:01:00 AM
From: Herschel Rubin	Read Replies (2) \| Respond to of 30916

Say, does anyone know why IDTC's holdings in NTOP are NOT included in the Balance Sheet under "Securities Held"??? Granted, NTOP shares wouldn't be "Marketable Securities" because selling them would require the whole S-1 procedure, etc. But if the NTOP holdings were on the balance sheet (over 20 Million shares remaining after forthcoming 2.2M sale), IDTC would have (conservatively) at least a $1 Billion line item on their balance sheet! Add this to the $238M Total Shareholder's Equity line item, plus $65 Million after tax ($110 Million pre-tax) for the 2.2 Million shares NTOP to be sold at $50+/share, YIELDS about $1.4 BILLION in equity for IDTC. $1.4 Billion equity divided by IDTC's 34 Million shares outstanding YIELDS $41 shareholder equity per share. Is IDTC undervalued? YES. Perhaps the market isn't according IDTC a $41/share valuation because much of that is predicated on the stability of NTOP's share price, but if NTOP can show that there are enough buyers to mop up the soon-to-be-sold 6.6 M shares, the markets will undoubtedly realize IDTC's compelling valuation. In fact, it does appear that if the investment bankers and analysts are confident ('drooling') over a NTOP secondary, NTOP share price stability will be improved, and subsequently, IDTC's valuation will become more obvious. Per Individual Investor article: fnews.yahoo.com "And since the company [NTOP] only raised $95 million in its recent IPO, it is sure to look to do a secondary stock offering within a year or two. As a result, Wall Street analysts will likely drool over the company's prospects in anticipation of some savory investment banking fees."