Shares of online telephone services provider Net2Phone (Nasdaq: NTOP) stayed on a tear on Wednesday, climbing 17 to 70-1/8, a gain of 32 percent. The stock was boosted by the news that Sprint has partnered with Net2Phone. Shares of Net2Phone have now more than doubled in the last three trading sessions.
Meanwhile, shares of Net2Phone parent company IDT Corp. (Nasdaq: IDTC) climbed 4-7/8 to 29-1/8 to Wednesday. However, the numbers don’t make much sense right now. As Herb Greenberg of TheStreet.com pointed out, IDT owns 57 percent of Net2Phone. At Wednesday’s closing price, Net2Phone is worth more than $3.3 billion. This means IDT’s stake should be worth about $1.9 billion, but IDT’s entire market value is just $695 million. Obviously one of these stocks is mispriced right now. In fact, both stocks may be too high.