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

To: Steve Fancy who wrote (13036)	8/13/1999 12:44:00 PM
From: W Sheffield	Respond to of 30916

I've been trying to submit the same info (about Sue H.) and couldn't get it to publish. What I liked was the final tag when Telefonica called IDTC an important emerging International company.

To: Steve Fancy who wrote (13036)	8/13/1999 1:14:00 PM
From: Hawaii60	Respond to of 30916

Deutsche Banc Alex. Brown loves deal $42 target and reitteration of BUY. 011:37pm EDT 13-Aug-99 Deutsche Banc Alex. Brown (K. Moore/K. McQuade) IDTC IDTC: IDT and Telefonica Internacional (TISA) to Establish and Jointly Dev-Buy Moore, Kevin M. 410-895-++++ 08/12/1999 McQuade, Kathleen M. (410) 895-++++ Deutsche Banc Alex. Brown ---------------------------------------------------------------------------- --- IDT CORPORATION (IDTC) "BUY" IDT and Telefonica Internacional (TISA) to Establish and Jointly Develop and Market Products and Services for the U.S. Hispanic Market ---------------------------------------------------------------------------- --- Date: 08/12/1999 EPS: 1998A 1999E 2000E Price: 15.38 1Q 0.08 0.14 0.09 52-Wk Range: 35 - 10 2Q 0.12 0.06 0.10 Ann Dividend:0.0 3Q 0.15 0.06A 0.11 Ann Div Yld: 0.00% 4Q 0.20 0.07 0.13 Mkt Cap (mm):611 FY(Jul.) 0.56 0.35 0.43 3-Yr Growth: 40% FY P/EPS 27.5X 43.9X 35.8X CY EPS 0.65 0.46 0.58 Est. Changed No CY P/EPS 23.7X 33.4X 26.5X ---------------------------------------------------------------------------- --- Industry: COMMUNICATIONS Shares Outstanding(Mil.): 39.743 Return On Equity (1998) : 38.0% ---------------------------------------------------------------------------- --- HIGHLIGHTS: IDT and Telefonica Internacional (TISA) signed an agreement to enter into several key strategic agreements and relationships: 1) IDT to acquire a 10% equity interest in Telefonica's SAm-I Latin American submarine cable project. 2) IDT plans to purchase a minimum of $100 million in cable capacity. 3) The companies will create a JV that will develop and exclusively market products and services to the Hispanic market in the U.S. and certain related markets in Latin America. Positive move for investors: 1) IDT is solidifying its emerging premier franchise focused on Latin America. 2) 1st EMC to partner with a PTT. 3) IDT will be more facilities-based - earnings and gross margins should improve as a result. Press conference to be scheduled next week. Reiterate our BUY investment rating. DETAILS: IDT and Telefonica Internacional (TISA) to Establish and Jointly Develop and Market Products and Services for the U.S. Hispanic Market IDT and Telefonica Internacional (TISA) signed an agreement to enter into several key strategic agreements and relationships: 1) IDT plans to acquire a 10% equity interest in Telefonica's SAm-I Latin American submarine cable project. The system is scheduled to become operational in various phases during 2000 and 2001. The investment for the project is greater than $1.5 billion. 2) IDT plans to purchase a minimum of $100 million in cable capacity. 3) The companies will create a JV, to be managed by Telefonica, that will develop and exclusively market products and services to the Hispanic market in the U.S. and certain related markets in Latin America. Positive outcome for investors: 1) IDT is solidifying its emerging premier franchise focused on Latin America. It is currently offering calling cards, wholesale, prepaid Internet and cellular services to this market. 2) 1st EMC to partner with a major PTT. 3) IDT will be more facilities-based. The capacity shortfall that impacted earnings performance over the last two quarters should be eliminated. Earnings and gross margins should improve as a result. IDT will be prepared to meet increasing demand for bandwidth between the U.S. and Latin America. A conference call with investors will be scheduled next week to discuss the strategic rationale and significance of the agreements. We reiterate our BUY investment rating on the shares with a 4Q 2000 price target of $42 (20.4x our CY2000 EBITDA estimate)

To: Steve Fancy who wrote (13036)	8/13/1999 1:21:00 PM
From: Hawaii60	Read Replies (3) \| Respond to of 30916

BTW, IMO strx another company in our sector will be taken out for at least a double, possibly more short term. They recently warned and took the hit down to $5. They had the report and conferance call last night. During this call the ceo admitted they were already profitable in July as they stopped competing with wcom. He also admitted that they were in negotiations with several companies to spinoff the German division for about $9 which he would be taking in stock and dividending. But, and here is the rub. Hawaii thinks that either glbx or qwst will take the whole company out shortly. They are looking at strx, primus and pacific gateway. However, strx is the best fit as pacific has almost a billion dollars in debt and primus does not bring as much to the table. I am long in this stock and substantially increased my position yesterday before the numbers were released.