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

To: Smear_campaign who wrote (11537)	7/16/1999 8:41:00 AM
From: orkrious	Read Replies (1) \| Respond to of 30916

There are two important items regarding the NTOP, IDTC earnings/valuation. 1. Regardless of the earnings IDTC reports, the value of NTOP will be established by the market. This will be reflected in IDTC's stock price. For ex, if the market values NTOP at $500 mil (I am just picking this number out of thin air), the market will place maybe 40%(IDTC's ownership percentage discounted for illiquidity) of this in IDTC's stock price. 2. IDT will be able to publicly talk about the effective drain of NTOP. Consequently, the Street will be able to see how much IDTC earns without NTOP, and to value it accordingly. The IDTC stock price will be easily valued as a combination of the two companies, regardless of what IDTC reports. Jay

To: Smear_campaign who wrote (11537)	7/16/1999 12:05:00 PM
From: vinh pham	Respond to of 30916

i am inclined to disagree with James Gatz on his statement that any repayment of loan or financial transactions between NTOP and IDT will not be recognized on IDT's income statement. i searched TNO and MMPT filings and found the followings. please note the sentence "as a credit to stockholders' equity" in the last paragraph of TNO excerpt. 1. from TNO 10Q filed on 5/17/99 (keep in mind that the dollar figures and the share numbers are in thousands): << 6. Subsidiary Initial Public Offering Effective February 10, 1999, a majority-owned subsidiary of True North, Modem Media . Poppe Tyson, Inc. ("MMPT") completed an initial public offering ("IPO") of its Common Stock. The number of shares issued was 2,990 at a price of $16 per share, with net proceeds totaling $42,048. As a result of the IPO, True North now owns approximately 51% of MMPT, down from its previous 70% ownership, and controls approximately 80% of the related stockholder votes. MMPT will use the proceeds from the IPO for working capital and capital expenditures. As a result of this transaction, True North recorded a $2,638 gain, net of $2,031 of deferred income taxes, as a credit to stockholders' equity. >> 2. from MMPT 10Q filed on 5/13/99: << Initial Public Offering--On February 10, 1999, the Company completed an initial public offering of 2,990,000 shares of its Class A common stock at an initial public offering price of $16.00 per share. Total net proceeds from the offering were approximately $42,051,000. The Company used a portion of these proceeds to settle a $6,000,000 note payable to True North that became due and payable upon consummation of the offering. The Company expects to use the remaining net proceeds for general corporate purposes and global expansion. Pending the use of the net proceeds for the above purposes, the Company has invested such funds in short-term, interest-bearing, investment grade obligations that are reflected as cash equivalents in the accompanying condensed consolidated balance sheet as of March 31, 1999. >>