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: Cymeed who wrote (1771)	2/2/1999 9:05:00 AM
From: StockMiser	Respond to of 30916

I'm not and xpert...hehe...but I seem to remember that the last analysis I read of the core business said that revenues were up, but margins had fallen because of a lack of international contracts. Seems to me that IDTC has resolved some of this since the analysis (reading from the press releases of international contracts). So...I would expect margins to rise now :)

To: Cymeed who wrote (1771)	2/2/1999 10:16:00 AM
From: HVN	Read Replies (1) \| Respond to of 30916

Frankly, IDT's core business will continue to remain under pressure and frankly, I can't see any way out - they started off with call back services - that's either dead or will be soon with the European markets opening up. Then they moved into calling cards. But the likes of AT&T and Sprint are well on top of that with products such as PersonalNetwork, etc. And it's not going to get any better as landline based calls in the US move towards lower rates - and calling cards follow. There's very slim chance that IDT can build a competitively cost structured network. SO, basically, their core business really needs to change. They have jumped on the internet bandwagon and what they have is awesome - however, as with the various auction houses and similar sites, this is short term. Make your money on this one while the sun shines. All the opportunities these guys have pursued over the years have been short term focused - it would take a lot for these guys to convince me they actually have a long-term plan for now. Basically, this time round, I see them looking to have their e-commerce search engine bought out - THAT's where the big bucks are. React someone!

To: Cymeed who wrote (1771)	2/2/1999 5:33:00 PM
From: Shtirlitz	Respond to of 30916

Cymeed, I am as much of an expert, as most of the people here. IMO, the core IDT's business, which is selling prepaid calling cards has come under serious pressure, since major players like AT&T decided to move in on the piece of this hot pie. That is true. On the other hand, IDT's management has once again proved to the rest of the world, that is company is an important player in telecom (not just a pre-paid card seller). They have started expansion in an absolutely new area of the market - internet telephony. And this fact has yet to be appreciated. Net2Phone is growing much faster than anyone expects. But growing is assosiated with expenses. Therefor shortfall in earnings and downgrades. While IDT is under pressure in the US market it is rapidly moving in to the other world markets, and everyone seems to be overlooking it. And here is thier recovery. IDT is a serious player with an excellent magement. And they are growing.

To: Cymeed who wrote (1771)	2/3/1999 1:20:00 AM
From: Bill Zeman	Read Replies (2) \| Respond to of 30916

Cymeed and Thread: Cymeed asked about IDTC's core business and what were the recent problems with it that caused the downgrade. I was amazed to see quite a few people respond, but no one gave the accurate information. I also heard quite a few comments about how IDT always has been a short term company, they can't compete with AT&T and Sprint, etc. IDT's most recent drop was NOT because their core busines is ailing. THEY HAD RECORD REVENUES!! If any of you posters had listened to the conference call you would have known this. Basically, they are growing so fast they can't keep up with the business. The reason for the recent downgrades and subsequent drop was because they pre announced that earnings would be $.10 off target because they had delays in deploying their network. They had to rely on leased lines and the spot market more than they were counting on. This problem will be corrected in 2 or 3 quarters, and is short term in nature. In addition, their marketing costs for all of their internet products have been shrinking their margins for a couple of years. This problem will be solved by the spin off/IPO. Regarding their long term aspects: THEY ARE BUILDING THEIR OWN INTERNATIONAL NETWORK! They own and have long term leases on all kinds of wire and cable. IDT is not only a long distance phone company, they are a bandwidth play. They will and already are able to compete with the big boys. IDT makes a lot of money as a wholesaler, and rather than loosing market share in prepaid calling cards they are picking up more of this lucrative market, supplying the service for dozens of well established brand names. Not only this, they have invented a switch that costs 1/6 of nortel's and alcatel's. It works and I understand they are actually installing it and using it sucessfully in their network deployment. This alone could be a billion dollar product, LONG TERM!! Even without the internet division which is VERY promising IDTC has a strong core business and looks good 1 to 3 years out. Bill Z