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: Louis Cornell who wrote (1333)	1/10/1999 3:12:00 PM
From: Secret_Agent_Man	Read Replies (2) \| Respond to of 30916

Louis, #1 IDT is much more than Net2Phone. Perhaps you should take a closer look at IDT's vision for the future and the role they will play in it. here is a paste from the yahoo thread newmill: n2phone, click2talk, ISP, + portal = by: kennedy__style__entrepreneur 13326 of 13380 spinoff. "IMO it will be every single IDT business, without exception, that does not fit into the hard telecom model. it will be all of the internet businesses rolled into one. it will be an internet pure play with more than 1,000,000 money paying customers going in. it will be backed by a global conglomerate as a major investor and marketing partner and it will happen soon." link to fortune article pathfinder.com Jonas' skill for finding untapped markets has led IDT to other businesses--the company thrives as an Internet-access provider and a leaser of network capacity to other phone companies. His main thrust, however, is in international markets. INSERT...I think this is about to change and become more Internet Focused as well as E-Commerce oriented. He's targeted immigrant communities with prepaid calling cards, advertising low rates to their home countries. This high-margin business grew 114% last quarter, accounting for $57.7 million in revenue. IDT is also the largest enabler of phone calls carried over the Internet, according to Lazard Frères. This segment of the company grew to $11.5 million last year, up 379%. The company's Net2Phone software, introduced in 1995, routes calls from a PC over the Internet for as little as 5 cents a minute. IDT is able to charge low rates since it doesn't have to pay fees to local phone companies to finish calls on their networks. Another product enables Internet calls between two regular phones. This segment of the industry is expected to grow from less than $100 million to $900 million by 2002. None of these ideas are particularly unique. In fact, IDT is one of hundreds of long-distance carriers, like Star Telecom, Telegroup, and Pacific Gateway, concentrating on these hypercompetitive markets in an effort to siphon long-distance business away from AT&T, MCI-WorldCom, and Sprint. So what separates IDT from the rest? For starters, the company's financial performance is topnotch. IDT has posted 15 consecutive quarters of double-digit revenue growth. Michele Wolf, a telecom analyst at Bear Stearns, recently upgraded her rating on the stock to a buy. "IDT boasts a highly diversified revenue base that spans a number of very hot growth markets," she says. As a volatile performer, Wolf says, it's a great buy for aggressive investors. The stock, which trades at 20 times analysts' estimates for next year, should rise to $46 by the end of 1999, Wolf says, thanks to booms in the prepaid calling card and wholesale international businesses. Investors could get a further boost if IDT decides to spin off the Internet telephony business, which analysts expect could fetch a substantially higher multiple on its own. Analysts also give kudos to Jonas' nimble management style. "It's extremely difficult to run in between the raindrops, and IDT has proven its ability to find new ways to make money," says Matthew Janiga of Lazard Frères. That adaptability is important in a shifting competitive landscape.