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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (11923)	11/7/1999 4:46:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 18998

Here is the link: Nov 06, 1999 IDT Corp. To get The Internet Financial Connection Newsletter emailed to you for FREE, send an email to ifc-request@mLists.net and write "subscribe" only in the body of the letter. In 1998, 225 stock ideas appeared in the IFC. As of July 10, 1999, the average return for each one of the 225 stocks was 51 percent. Click here to receive two FREE weeks of Investors Business Daily. It will be delivered to your home or office every business day. There is no commitment and you will NOT receive a bill unless you ask to continue your subscription. "One of the best sources of financial information available!" Mark Johnson, editor of the Internet Financial Connection. Eric Efron of the USAA Aggressive Growth Fund (800-531-4121), provides the following stock idea on IDT Corp. (IDTC 20 1/4). Below is the write up. Eric Efron, co-manager of the $1.1-billion USAA Aggressive Growth Fund likes to invest in rapidly growing companies. One company he likes and that fits his investment criteria is IDT Corp. It is mainly a long-distance telephone company serving domestic and international markets. About one-half of its long-distance is wholesale (carrying long-distance traffic for other phone companies) and the other half is retail (selling long-distance services to people actually making the phone call). Eric explains that IDT has been on a mission to lower telephone rates and bring better deals to consumers than the larger long-distance phone companies. "They have gone up against the large telephone companies and found ways to make money off of their inefficiencies, while providing better values to customers," says Eric. He mentions that many people view the long-distance business as extremely competitive, with weak profit margins. "I couldn't agree with them more... IDT is extremely cost competitive and its profits are growing rapidly... They will be a survivor in the long-distance market." He thinks IDT's stock should be trading considerably higher Individuals can now talk to each other over the computer or even conventional telephones using the Internet without incurring any long-distance charges. This is a threat to many long-distance carriers but IDT stands to benefit from this trend. IDT owns 57 percent of Net2Phone (NTOP), an Internet telephony company, allowing customers to make low-cost calls using their personal computers or telephones. Efron explains that NTOP has 48.5 million shares outstanding, of which 27.65 million IDT controls. IDT has 35 million shares outstanding. So, in essence, each share of IDT owns .79 shares of NTOP. "With NTOP trading at $50 a share, that translates into about $40 of value, each share of IDT has embedded into of NTOP stock. Yet, IDT is selling at just over $20 per share... It's very bizarre!" Eric figures that IDT alone is worth at least $15 a share, not including any valuation applied from NTOP. He thinks IDT's stock should be trading considerably higher, in the $45 to $50 range, when factoring in the value of NTOP. Previous Page Next Page