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IDT: Hotline to Havana
07/08/2015 8:00 am EST
Our newest featured stock recommendation is a telecom play on the opening of Cuba for business, explains Nick Hodge, editor of The Crow’s Nest.
For the first time in a long time, residents of the United States and Cuba can call each other directly. And they’ve got one company to thank: IDT Corp. (IDT).
IDT is the largest US-based carrier of international long-distance calls. And right now, it’s the only US carrier to have a direct interconnection with Cuba.
You see, when Barack Obama set out to thaw relations with our island neighbor, IDT was quick to move. The company rushed to ink a deal with Cuba’s state telecom company, Etecsa.
As a result, it has a huge first-mover advantage and will be one of the first Western companies to profit from Cuba’s reconciliation with the United States.
Established in 1990, IDT Telecom has been providing long-distance phone service for 25 years. In fact, it’s the seventh-largest long-distance carrier in the world.
It is also a pioneer in voice-over-Internet communications. IDT’s flagship product is Boss Revolution, a smartphone app that connects long-distance calls over the Internet.
It’s also a portal through which people can not only communicate but also transfer money and pay bills.
Boss was designed specifically for foreign-born and first-generation immigrants, people who move to the United States for work and then send part of their paychecks back to their families.
Over half of foreign-born Hispanics in the US routinely remit money, with annual remittances from the country totaling $50 billion a year.
IDT’s disbursement network includes over 37,000 locations in 17 Latin American nations, as well as 1,400 locations in 18 African countries. Now, you can add Cuba to the list.
Finally, IDT’s Zedge app enables users to change their mobile phone’s ringtones, wallpapers, notification sounds, and icons using a library of free, high-quality content. It’s been installed on 140 million devices and has 27.5 million active monthly users.
Make no mistake; Cuba and the United States are headed down the path of reconciliation. It may take a few more years, but a new emerging economy is being introduced to the world stage.
Opportunities like this don’t come around very often. IDT is going to make the most of it. And you should, too. We’re buying IDT Corp below $19.
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