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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (6575)	4/7/1999 1:21:00 AM
From: Bill Zeman	Read Replies (1) \| Respond to of 78464

Allen Sorry to take so long to get back to you. Hope you went ahead and added to your position in IDTC, as it is now at 23 7/8, 50% higher than when I first introduced it to this board. To answer your questions: I don't remember any secondaries being offered in the last couple of years. I tried to look up info on shares outstanding and could not confirm that they have doubled as you said. If they did, it may be because of an acquisition and insider option exercises. I have not read the bond covenant, so I do not know why they must buy them back, but it appears almost certain that they do need to. I suppose they could use cash on hand instead of bridge financing, but it would deplete their cash levels to what they probably consider dangerously low levels. I think it would bring them to under 60 million dollars, and remember they are rapidly expanding their network and this requires infrastructure investment. The company did spend 11.7 million on network expansion in just the last 6 months. There is some merit to the argument on the IDTC thread that there might be some private deals that would replace an IPO. However, those who have argued that the break off of Net2Phone will not be largely beneficial to shareholders are ignoring these key facts: CEO Howard Jonas owns 1/3 of the common stock and is not likely to take this VERY HOT internet company that he has sacrificed so much for and put so much money and hard work into for YEARS now, and do something with it that does not increase the value of his shares; Also Jonas and Co. have a history of looking out for shareholder value and I do not expect them to stop now. Sorry I was not able to give complete answers. Happy Investing! Bill Zeman