Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rappin1 who wrote (18650)	2/15/2000 11:16:00 PM
From: Smear_campaign	Read Replies (2) \| Respond to of 30916

Herbes simplex II with yet another Theshi*.com article. This time read it he sounds so uninformed he is almost laughable, lets hope he follows some of the foot fungus he preaches to on the short side. IDT insight: Great scoop by CNBC's David Faber the other day about America Online's (AOL:NYSE - news) reported desire to buy out our old friend IDT's (IDTC:Nasdaq - news) stake in Net2Phone (NTOP:Nasdaq - news). If such a deal does happen (there hasn't been any announcement yet) short-sellers will likely be licking their chops over IDT -- at least they will be after they sell the IDT stock they currently own. (That's right: short-sellers own it as part of an arbitrage of being long IDT and short Net2Phone.) So, why would they then go short IDT? Because as this column pointed out, according to IDT's convoluted fourth-quarter earnings report, its prepaid telephone card biz doesn't look so great. To quote from that column: "Gross margins are on the wane. Most telling was that the fastest growth -- 55.6% -- came from non-IDT-branded cards, which have meager 3.5% gross margins; that compares with an 8.9% gain of IDT-branded cards, which have margins of 26.9%. There were similar examples in other parts of the company, which suggest that in order to deliver that stunning revenue growth, IDT all but gave a good chunk of its biz away." his time it sounds so silly