Paul
Have been doing much more DD on IDTC, b4 posting on this esteemed thread. Funny, how I have bought not just shares in the stock but call options without doing as much DD! Anyway here goes:
The best current value play I know, IDTC. It is not only a low priced tech stock, but has the extra bonus of being a sexy PROFITABLE internet play at only roughly 1.5 book value.
Core Business: IDT is an international telecom. They are currently building their own network complete with fiberoptic bandwidth and POPs. CEO is Howard Jonas, former AT&T top dude from b4 dereg. He has built the company from 11 million to 600 million dollars. Revenues have sequentially increased for as many quarters as I can get info on. They offer low cost long distance to compete with the big guys, and often serve as a wholesaler. They are and have made a lot of money in the lucrative phone card business. All projections are for earnings to continue on an upward spiral after they get their network completely built out.
Core Business Innovations: The research departments of one of their recent acquisitions has invented a switch that will cost 1/6 of the switches made by Nortel and Alcatel. It works and they are actually installing it in their network.
Internet Business: IDTC has an ISP, (of which I am using right now for $10.99/month), which is in the top ten for customers. However, they are deemphasizing this aspect of the business. IDTC's biggest future asset is internet telephony. They have a product called Net2Phone which allows any domestic call anytime for 4.9 cents a minute through internet telephony. No one can touch this, and their intl. rates are also the lowest. The internet telephony (IT), is only slightly less quality than regular phone lines. There are currently over a million users, and with Net2Phone direct neither the calling party or the called have to be anywhere near a computer. With this same technology they also have many other products. Last monday they launched an internet portal, (http://www.ezsurf.com) that allows shoppers to speak directly to an etailers live customer rep while surfing the web through a product called Click2Talk. A recent survey said 89% of people are still uncomfortable with transmitting their credit card number over the internet. This innovation could be huge. IDT has already signed up dozens of big name companies and etailers to use this technology.
Internet IPO/Spin-off: Recent excitement in the investing community centers around the emminent IPO/spin off of the internet business. It is doubtful the market has priced this into the stock as of yet, because no one really knows how it will benefit shareholders. All is currently secret according to SEC quiet rules. Company could retain IPO shares as well as gain huge cash pay off for initial sale, and may even issue 1 IPO for every 5 or 3 shares of IDTC in some kind of combination IPO/spin off.
Next Post: Why the price is depressed.
Bill Z |
