Report from Janine @ IR @ IDT>>>>>
My talk with Janine:
by: madamimadam12
14864 of 14897
Folks, I am a little more reassured. The news ain't great, but it
ain't dismal either.
1) The numbers. IDT will release a response to the suggestion
that they won't meet the 0.16 per share estimate. Janine
suggested that IDT will confirm that they will not meet the
number, but suggested also that the numbers bandied about this
board are simply exaggerations.
2) She said the analysts were prudent in reducing IDTC to HOLD
because the entire sector is being hit by the same problem:
decreasing margins and revenue. She said that the analysts
"pieced nothing together" and were treating IDTC according to
the information that the rest of the sector was providing. True
enough.
3) M&M is holding them back from releasing fiscal details on the
deal. She described it as an "absolutely huge" deal that is very
big for IDTC. "Revenue-sharing" was a term she used to describe
how IDTC will make money out of the deal.
4) Quiet periods: There are two. i) The first began in the middle
of this week and lasts for 30 days. It was required "BY THE
UNDERWRITER" (Janine's words) and may be curtailed
somewhat in 2 or 3 weeks to allow for some details to be
released. ii) The second quiet period begins next week for IDTC,
and represents the quiet period required by the SEC prior to
earnings. The two quiet periods overlap, but Janine was hopeful
(my interpretation) that IDTC would be allowed to issue details
of the SPINOFF during the pre-earnings quiet period, because
that information does not impact earnings or forward-looking
information.
5a) I asked her about the ClickETrade stuff. She asked if I meant
Click2Phone: "Yes, we have hundreds of clients." I said no, I
meant the portal. She laughed a little and was very evasive. She
asked if I was referring to the information on the message board
(that's us) and I said yes. She couldn't comment, but let slip that
the major partners haven't signed off on their commissions. I
repeat, COMMISSIONS. IDTC will comment "very very soon"
(her comments) when all agreements have been signed off on by
all partners.
5b) No denial that 1,000,000 Net2Phone users will be the startup
users for a new portal.
6) IPOs. As mentioned, an underwriter has instructed IDTC to
maintain 30 days of silence. No mention on who, of course.
THere will be only ONE IPO: Net2Phone. The Internet division
of IDTC will be spun off with Net2Phone.
7) I asked about KSE (Brent) and Hawaii60 (John). She said that
she regularly speaks to them and laughed when I asked if they
were one person. Apparently they have very distinct
personalities, which I can gather from their posts too: One is irate
and stormy, the other very friendly and kind. You piece together
which is which!
8) On words of reassurance: Of course she'd never advise anyone
to sell or buy, but she reminded me that telecoms take hits when
earnings are bad, and bounce back. Too true.
Don't sell low is the obvious advice.
I wish I could offer everybody more, but that's about all. Janine
owns shares too, and heck, talking to her was reassuring. I like
her. She seems sincere. She said she'd phone back and leave a
message (I am heading home) regarding what the fax from IR
contains. Right now she's on the phone for a long conversation
with someone important.
The company may face a short-term rocky road, and we can all
expect a certain degree of SILENCE until earnings are released.
Suffice to say, if they are bad and the company is forthright and
releases accurate information tomorrow, we have some time to
recover prior to earnings. If we meet revised estimates, we will
bounce back. And by that time, the IPO should be common
knowledge.
Sorry I can't offer everyone more assurance than that, but I hope
it helps.
Posted: Jan 14 1999 8:11PM |
