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

To: vinh pham who wrote (8871)	6/4/1999 10:05:00 AM
From: Peter Yang	Read Replies (1) \| Respond to of 30916

Is this stock really dead? Why an upgrade doesn't move the price up? >> 09:07 ET IDT Corp (IDTC) 19: Scott & Stringfellow upgrades shares of telecommunications services company from "hold" to "long-term buy." <<

To: vinh pham who wrote (8871)	6/4/1999 10:16:00 AM
From: vinh pham	Read Replies (2) \| Respond to of 30916

another post by James_Gatz_99 on the same issue: <<by: James_Gatz_99 77383 of 77479 A couple of specific transactions to consider: a. IDTC sells shares of NTOP to the public and CIs - IDTC reflects this as a financing activities in cash flow and records a minority interest liability/contra-equity. This has no income statement impact. Remember NTOP does not own itself - holders of IDTC equity do. They are the ones selling the NTOP stock - just like they might sell a division to a strategic buyer or the entire company. b. Financing transactions and accounts between IDTC and NTOP - this is literally just a financial reporting gimick used to let IDTC shareholders know that operating cash flow from the core business is actually stronger than reported on a consolidated basis. NTOP reports this as a liability, and IDTC core business reports this as an asset/receivable, but in consolidation of IDTC and NTOP this account is eliminated. c. IDTC provides services to NTOP - for NTOP financial reporting purposes this represents an expense and a purchase from a related party. If IDTC were not controlling NTOP, this would be revenue to IDTC. However, because IDTC must consolidate NTOP, this transaction eliminates - the expense and the revenue cancel each other out. Analysts will with considerable patience be able to determine the performance of both NTOP and IDTC core, but they must wade through the financial reporting to do it. Therefore, we will achieve greater transparency, but not total transparency. That is the price for control of NTOP.>>