I will answer two of your questions. The rest others can take.
<(4) How come none of the analysts changed his/her views about IDTC? Many still have "Hold" and even "sell" ratings.
(5) Assuming N2P spins off, what is the value to IDTC? I think $5-$10 per share. How much do you think it is worth?>
Most of the analysts that cover IDTC are restricted and have gone quiet because of their involvement with the IPO. This includes, BT, Bear Stearns, and H&Q. The others with the exception of Kaufman (who seems to hold a personal grudge), have all told me they will upgrade the minute the IPO is announced.
Why? Because when the net2phone and ISP business are spun off, it will immediately increase gross margins in the core business and drop an additional 8-10 cents to the bottom line EACH Q. Also, should IDTC retain 50% of the shares of the spinoff, as is the norm, and the spin off is valued at 2X the core business, as it most assuredly would be. Well, then the value of IDTC shares are increased as well.
Finally, consider this. Without the spinoff and with the current gross margins, the company is fairly and reasonably values based on either price to earnigs, price to sales or price to book at about 28-30 |
