IDT *(idtc) following this new issue?* Message Board

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Technology Stocks : IDT *(idtc) following this new issue?*

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To: Cymeed who wrote (1771)	2/3/1999 1:20:00 AM
From: Bill Zeman	Read Replies (2) of 30916

Cymeed and Thread: Cymeed asked about IDTC's core business and what were the recent problems with it that caused the downgrade. I was amazed to see quite a few people respond, but no one gave the accurate information. I also heard quite a few comments about how IDT always has been a short term company, they can't compete with AT&T and Sprint, etc. IDT's most recent drop was NOT because their core busines is ailing. THEY HAD RECORD REVENUES!! If any of you posters had listened to the conference call you would have known this. Basically, they are growing so fast they can't keep up with the business. The reason for the recent downgrades and subsequent drop was because they pre announced that earnings would be $.10 off target because they had delays in deploying their network. They had to rely on leased lines and the spot market more than they were counting on. This problem will be corrected in 2 or 3 quarters, and is short term in nature. In addition, their marketing costs for all of their internet products have been shrinking their margins for a couple of years. This problem will be solved by the spin off/IPO. Regarding their long term aspects: THEY ARE BUILDING THEIR OWN INTERNATIONAL NETWORK! They own and have long term leases on all kinds of wire and cable. IDT is not only a long distance phone company, they are a bandwidth play. They will and already are able to compete with the big boys. IDT makes a lot of money as a wholesaler, and rather than loosing market share in prepaid calling cards they are picking up more of this lucrative market, supplying the service for dozens of well established brand names. Not only this, they have invented a switch that costs 1/6 of nortel's and alcatel's. It works and I understand they are actually installing it and using it sucessfully in their network deployment. This alone could be a billion dollar product, LONG TERM!! Even without the internet division which is VERY promising IDTC has a strong core business and looks good 1 to 3 years out. Bill Z

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