I think you have to realise that Sandon Capital is an investment firm that first and foremost is about making a dollar! Yes, a vote of confidence that they identified IDT as an undervalued opportunity. However, as an activist manager, if they don't get the chance to impose their will at board level to enact change they believe they will crystallise value, then they can and more than likely have to a degree voted with their feet, as much as they can, given their holding in the company and impact on the share price.
A large part of investing in a company the size of IDT is trusting that management have the capability to grow the company, which I believe that Sparling and Co. do. Unfortunately, a large part of this relies on getting government backing, which management, while they have worked hard to position the company for this, have been completely blindsided to date. This is not the fault of the existing management.
IDT Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
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