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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (9615)	6/21/1999 11:48:00 AM
From: Zeev Hed	Respond to of 30916

Craig, I think that Pink's point is that the net2phone, should not be factored in, and frankly, my model assume net2phone to be gravy, just there "normal" business" should justify current prices. Mind you, I think that the decrease in margins is not due to "more competition" but is a temporary effect of "sizing up" the organization to handle twice as many "minutes" or even more. They have added greatly to their "fixed costs" and are hoping to fill their capacity, if they do (and momentum is on IDTC's side), the margins will once more expand, until they go into the next expansion phase. That is why for some time to come, I expect erratic earnings stream. What we have to keep the eye balls on, is the growth of the top line. Zeev