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

To: Spartsker who wrote (8139)	5/20/1999 10:28:00 PM
From: Hawaii60	Respond to of 30916

Andy will probably do the numbers but few folks think the market cap will be less than 500M

To: Spartsker who wrote (8139)	5/20/1999 10:36:00 PM
From: Jimbo Cobb	Read Replies (1) \| Respond to of 30916

The $50 Million figure is the rough estimate of how much money will be raised in the IPO (say 5 million shares * $10 a share or whatever the numbers really are)....this is just a fraction of the overall number of shares for Net2Phone....The market cap of Net2Phone would be much, much higher than $50 million if they actually raised $50 million by selling a fraction of the stock in an IPO....IDTC would still own most of IDTC after the IPO plus they would have the $50 million in cash... I think you are only counting the $50 million in cash... Jimbo.

To: Spartsker who wrote (8139)	5/20/1999 11:03:00 PM
From: Internet Jones	Read Replies (1) \| Respond to of 30916

If the IPO prices at $X per share, then the Market Makers trade it back and forth at $X * 3 on day one. This results in a market cap of $1 billion on day one of the IPO. IDTC owns 66% of this $1 billion value. Thus IDTC owns an asset worth $660 million. With IDTC at $30 per share, its market cap yesterday morning was $990 million. So the new $660 million asset will increase its market cap by two-thirds. IDTC's revenue is about an annual run rate of $640 million per year, growing at about 120% per year. The market cap you assert values the company at about one times sales, pretty cheap for an Internet company growing more than 100% a year. Of course, the company is profitable. Net2Phone's icon on the AOL desktop will reach 18 million customers, day one. No announcement yet from Yahoo or others about using Net2Phone or PC2PC.