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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: 5,17,37,5,101,... who wrote (8980)	6/24/1998 12:14:00 AM
From: Xianming Liu	Respond to of 11555

Jackson: I do not know if the reprice of options is so simple. It seems to me the reprice need shareholders' approval. One of the items in FY97 proxy was for reprice of the options. If the reprice is going to happen, it probably will need to proxy vote again. I do not know if shareholders will let it pass easily this time. The business that IDTI is in is very capital intensive. Building Winchip 2 & 3 and other products take a lot of money. I doubt there will be any significant share repurchase in near future. If you have any doubts, go read IDTI's forms 10 K and 10 Q to see how IDTI is booking the equipment it purchased. After it purchased the equipment, IDTI sold the equipment to a lease company, from which IDT leases the the equipment for use. It seems to me that IDTI is trying to increase its "liquidity" in short-term investment and cash balance while at the same time increase its long-term obligations. Remember IDTI has been doing this since 1996 and that the leasing company has to make some money. If IDTI is really floated with cash, you'd wonder why it is doing the leasing trick.