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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: SKARLOEY who wrote (66482)	4/6/1999 2:15:00 PM
From: Mr. Stress	Read Replies (1) \| Respond to of 119973

DELL hits $47!

To: SKARLOEY who wrote (66482)	4/6/1999 2:18:00 PM
From: BarbaraT	Read Replies (2) \| Respond to of 119973

IDTC - should be a major gapper - this is a partial article from Raging Bull - WHO'S NEXT? The recent maneuvers made by international long distance company IDT (IDTC) suggest they are taking the necessary steps to launch the next explosive Internet spin-off IPO. Net2Phone, their Internet phone group, should file to go public within the next three weeks. Net2Phone offers a variety of Internet telephony products, including Net2Phone Direct, Net2Fax, and Click2Talk. In December of 1998, IDT announced that it was reviewing strategic options for Net2Phone, including a spin-off IPO of its Internet services group. The company then went mum on its future plans for Net2Phone until earlier this week. On Monday, IDT announced plans to buy back $100 million in bonds from existing investors. This move will allow the company to pursue other forms of financing for Net2Phone. IDT also reported that it had arranged a $150 million credit facility from CIBC Oppenheimer, Banker's Trust and Lehman Commercial Paper Inc. to purchase the bond notes. (I would be surprised if some of these investment banks don't turn out to be the underwriters on a Net2Phone IPO). IDT's Monday press release notes that the company is taking these steps "primarily for the purpose of enabling IDT to effect one or more possible financing transactions involving Net2Phone, Inc." The release further notes that "Net2Phone has executed a term sheet with significant strategic investors relating to an investment in Net2Phone's equity securities." If that is not pre-IPO maneuvering, then I don't know what is. UNDERSTANDING IDT'S SPIN-OFF MOTIVATIONS IDT's primary businesses are the following: 1) Internet service 2) International and domestic long distance 3) Prepaid calling cards 4) ezsurf.com - a shopping portal powered by Internet telephony - and 5) Net2Phone, the company's Internet telephony group. Emerging international carrier IDT has been a pioneer in a process known as "callback" or "re-origination" - an arbitrage opportunity that allows IDT customers worldwide to get outbound U.S. rates. The company is also aggressively building private IP telephony networks in which voice traffic runs over data networks based on the Internet protocol. Last year, these four businesses racked up sales of $335 million and inspired a growth rate of almost 150% for the company and founder and CEO, Howard Jonas. However, pricing pressure in the wholesale long distance market and increased competition among distributors in the pre-paid calling card business have hindered earnings and pulled IDT's stock from a 52 week high of 38 1/2 to Thursday's close at 17 7/8. NET2PHONE'S GROWTH PROSPECTS Meanwhile, the potentially lucrative Net2Phone remains trapped inside IDT. Last quarter, the Internet division racked up sales of $7.2 million - a 167% gain in revenue over last year's comparable period - and IDT currently claims a customer base of over 1.25 million Net2Phone users. Last quarter total Net2Phone usage minutes grew to 53 million, a 54% increase over the previous quarter's 34.5 million minutes. The company was also awarded the 1998 Product of the Year award by Internet Telephony magazine. And there is more to come. Internet telephony will be one of the next great waves of growth on the Internet and Net2Phone is positioned to be one of the primary providers. Voice quality for Net-based phone calls will continue to improve as broadband (and the "always on" nature of broadband connections) makes Internet-based calls a natural extension of Web use.