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


To: Andrew H who wrote (2964)3/20/1999 1:47:00 PM
From: Doug F  Read Replies (1) | Respond to of 30916
 
Getting a piece...

Agreed. Giving shareholders a piece of the IPO makes sense, especially in light of HJ's holdings. Regarding IDTC's price behavior in this scenario, and the ratio of shares given out, XTON's recent IPO announcement may be a useful example. A couple months ago, they announced the intent to spin off their Elottery (ELOT) company, offering XTON shareholders 1 share of ELOT for every 5 shares of XTON. The caused a stampede into XTON, that is still holding at higher price range, even though the IPO won't happen in 1st Quarter as XTON had announced and ELOT doesn't even have any major customers announced.

If IDTC announced a similar deal, things could get a little crazy. (Maybe not DBCC kind of magnitude, but enough to put a smile even on the faces of even those whose bought at >20). Unlike ELOT, Net@Phone is already in business, has very exciting partnerships, etc. People may also feel safer buying IDTC than XTON, since it has much stronger growth history (and prospects).

Just my two cents,
D