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

To: Tom Caruthers who wrote (1351)	1/11/1999 3:02:00 PM
From: C. McD	Read Replies (2) \| Respond to of 30916

FYI - according to Yahoo! thread, news on IDTC downgrade is getting mixed up with IDTI. Marketwatch reports IDTC was downgraded because their RC? chip prices were decreased by 20%. IDTC doesn't make RC? chips. Also some confusion about whether Credit Suisse First Boston Corp. Analyst Robert Pomeroy ever covered IDTC to begin with. Not sure what's going on, but something is definitely screwed up in Denmark, or NJ, or somewhere. Here's the Dow Jones news: 11:52 IDT STK-2:Rating CHANGE Follows Pacific Gateway News>IDTC< NEW York(Dow Jones) IDT Corp. (IDTC) shares were down nearly 16% Monday after Credit Suisse First Boston Corp. Analyst Robert Pomeroy cut the company's rating to hold from strong buy. Pomeroy cited "deterioating pricing and margins in the wholsale long distance market... we thik IDT's shares may be negatively affected by the detiorating wholesale market." The share price could fall to $10 to $15 in the short term, he added. Pomeroy's note follows an announcement by industry leader Pacific Gateway Exchange Inc.(PGEX) indicating fourth-quarter revenue and earnings will fall below analysts expectations. That company's stock tumbled more than 40% in early trading after Monday's announcement and recentlywas down 16 1/2, or 36.1% at 29 3/16. IDT shares were down 2 13/16 or 15.7% at15 1/16 on Nasdaq volume of 2 million, compared to a daily average of 915,900. -Craig Karmin; 201-938-2020; (END) DOW JONES NEWS 01-11-99

To: Tom Caruthers who wrote (1351)	1/11/1999 3:07:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 30916

Tom, I concur.. I was wondering why they were dropping prices so quickly as well. I am unable to determine whether it is becaues they are experiencing a lower opertional cost now that the infrastructure is in place domestically, or whether they are trying to capture substantial market share. Either way, it is far easier to lower prices than to raise them. I don't believe that management would lower prices unless they felt they could maintain significant profit margins as volume increases. Regards, Ron