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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: Michail Shadkin who wrote (763)	5/19/2001 11:26:27 PM
From: Torus	Read Replies (1) \| Respond to of 6873

I am looking for some long plays... I'm almost afraid to do this, but since you asked. I've been long IDT for several years and it's been a bumpy road, but I think they have tremendous promise. Some highlights: Over $1 billion in cash. Virtually no debt. Taking out competition in the calling card biz. Picking up assets on the cheap as other telco's go belly up. Investments from AT&T and Liberty Media among others. Over $1 billion in annual revenues. Free fiber from TYCO for 15 years. Some problems: They have to pay taxes on the $1 billion. They don't seem to really care what Wall Street thinks of them. They rarely give guidance, and when they do, they frequently don't meet their own targets. They have been losing money. Some unknowns: Will they get out of paying the tax (see recent STRX, TGNT and ICG purchases)? Are they going to start playing the kiss Wall Street's butt game (see recent articles in the WSJ and Barron's)? Will any of their other entrepreneurial pet projects turn into the next windfall (see tv.tv)? Will the agreements with AT&T kick in and immediately make them profitable? From what I can gather the valuation is considered to be attractive by those who are experienced in looking at such things, but the uncertainty regarding how long it will take them to get profitable is a problem. I'd like to hear your opinion.