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

To: Augustus Gloop who wrote (8131)	5/20/1999 10:05:00 PM
From: Hawaii60	Read Replies (5) \| Respond to of 30916

A couple of points to ponder. Today CIBC Openheimer reiterated their buy on IDTC and raised their price target from 24 to 36. Shortly thereafter Vik Grover of Kaufman Bros reiterated his sell. Both companies did so really just prior to earnings. (Vik recently always does that). In fact last earnings he did it the day before when the company had provided him NO information in months. ) Now, I am asking myself. Didn't CIBC and Lehman Bros and Bankers trust just extend a line of credit to IDTC to buy out their bonds? Didn't they do one heck of a lot of due diligence first? The answer is obvious. CIBC reiterated their buy and increased their price target because THEY KNOW what shape IDTC is in better than almost anyone. They just did the due diligance. Vik Grover? What do you think his decision to reiterate his sell was all about? Tit for tat. Ego? Protecting a short position? I'm not sure. Anyone else here have any ideas? Next, lets go over this shares or no shares business with net2phone again. Howard Jonas is the largest shareholder. He called the shots on this and he decided that rather than distribute shares of net2phone to investors. He wanted to retain a 66% interest in net2phone as part of the core business. Why would he do that. I'll tell you why. Because he has CONFIDANCE in the business and he knows we all will make more money this way. Some simple math. Lets say I own 1000 shares of IDTC and it is at $27 IDT does a net2phone IPO and gives me 10/1 or 100 shares. IPO goes public priced at $20 and immediately goes to $60 I have made $4000.00. Over the next several months it goes up and down ranging between $35 and say $75 Now, what happened to my 1000 shares at $27. Did it go up, down (likely) That is what normally happens. Lets say it stayed even for arguements sake. OK, I made $4000, if I sold net2phone at that price of $60. WOULDN'T IT BE BETTER TO JUST KEEP 66% IN THE CORE? If THAT stock goes up even $4, I have made the same money. If it goes up $10, I have more than doubled that. $20, five times more. The arithmatic and my point and Howard Jonas's point should be REAL CLEAR. This, is the best way to do it. Comments graciously accepted