IDT Corporation: A Spinoff Machine (Ticker: IDT) With Rich Howe
This week we brought on first-time guest Rich Howe to discuss IDT Corporation. Rich runs Stock Spinoff Investing, a service that specializes in stock spinoffs. Here are some questions we asked him:
What are stock spin-offs and why do you like them?
How did you find IDT as an investment?
Explain IDT’s structure and the history of the business.
The traditional communications segment is seeing a decrease in overall sales right now. Does that concern you? How are they managing these declines?
They are planning to spin off net2phone but postponed it. What are your thoughts on the spin? Any concerns about the delay?
Thoughts on management and ownership. How important is this to the investment thesis?
How do you value this conglomerate today? Can we use sum-of-the-parts analysis?
Pre-mortem: What could go wrong with an investment in IDT?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.