Two Catalysts at IDT
While I think IDT is cheap when evaluated on its mature business lines, I’m not a big fan of investing in a company simply because its cheap. You can end up sitting on a stock waiting indefinitely and often your patience runs out before something happens. So there needs to be a catalyst.
In the case of IDT, I see a couple of catalysts. First, I think they are reaching an inflection point where the declining calling card business is overcome by the growing cardless long-distance (Boss Revolution) business. And second, probably the biggest reason for me to have bought the company is that I think they have a hidden gem in a little subsidiary called Fabrix. While I am going to talk about Boss first, it is Fabrix that I believe that holds the real potential. Read more
Reminiscences of a Stockblogger 