For every action, there is a reaction. And reader letters taking issue with Herb Greenberg's column Has IDT Been Making Loans to a Company That Doesn't Technically Exist? provoked a landslide of defenders. Tell us which side you're on. And don't forget your full name, not to mention any position in IDT.
The Truth Hurts
These bozos are just crying over spilled milk. Give me a break. Herb probably did more homework for this story than most investors do in an entire year!
I say great job. The truth hurts sometimes.
-- Jeff Farley
Herb has a great track record and his intentions should not be regarded as sinister. I have followed Herb a long time and one thing seems to hold true: The more defensive a company, shareholder or analyst gets regarding one of his pieces, the more likely I am to make money going against these guys. The road is splattered with these people. Good companies let the results speak for themselves. I am not long IDT. If I was, I would want to know any information I could -- positive or negative.
-- Mike Busch
What a bunch of babies! I don't know why anyone would care whether or not the letter writer lost money in IDT. The questions raised are legitimate. The whining isn't. Knowing the
, the whiners are best served by moving on.
-- Stephen Reinhold
First let me start by stating that I am long IDT. And yes, it bothers me that the stock is getting hit hard today. But it bothers me more that the company I am investing in could be doing the things Herb describes. I agree with Herb that something smells fishy. If it is indeed as bad as it sounds, I want to know. Everyone keeps asking, Why didn't he speak with the individuals directly? Sounds to me like he tried and kept getting the runaround. Makes it smell worse to me.
Is Herb Greenberg to fault for these things happening? I don't think so. Is it his job to report it if he sees it? I think so. Have I lost a lot of money because of this article? Yes. But I can't blame Herb Greenberg.
I prefer to know both sides of the coin when I invest in a company. If people want to live in a fantasy world and only want to hear a bunch of cheerleading about their stocks, let them go elsewhere.
-- Charles P. Cannon
Herb writes a column and chat boards are deluged with angry longs certain that "Herb is a no good and
isn't worth 50 cents. Cancel my free subscription!" So what's new? Didn't the same thing happen with
Maybe you should compile a detailed history of the titanic, multiyear
struggle that includes some hate mail, a chart of IOM and Greenberg's articles. It's a pattern. Patterns repeat. Illustrate the pattern and you can take the fear, mystery, anger and hate out of it.
Not long or short IDTC, AIRB, GTRC or
-- B.M. Bigsby
At the same time I first subscribed, I was buying up
. Herb was trashing the stock but because his column was new to me, I ignored his advice. Result: I took a major beating.
Since then I've begun taking more notice of what
publishes. Result: I'm making a bundle, thanks mostly to Herb and
Gary B. Smith
is fun and interesting but I still haven't figured out a way to make money off of him.)
Insofar as IDT is concerned, note that I read the response letters you published. Nothing but pure drivel. As far as I'm concerned, extending a bank loan to a nonexistant company is the height of fraud. Anybody who thinks otherwise is living in la-la land.
The only problem with your publication is that you're too cheap by far. I'll happily pay more for my subscription in order to put your publication out of the reach of whiney idiots.
-- Adam Edwards
I think Herb does a great job. His articles, along with those by James Cramer and
Rookie of the Year in a landslide), are what makes
the best investing site on the Internet.
Keep it up, Herb. The people who complain about your stories are just mad because they don't want their heads pulled from the sand. Fear not, they will eventually find their way back to the
message boards where they can gang up on anyone who says anything they don't want to hear and no one will try to confuse them with facts.
P.S. I have never owned any shares of IDT, long or short.
-- Kent Newsome
My guess is that if this was all as innocent as the IDT defenders would make it sound, then someone would have returned Herb's phone calls to explain why the $25 million investment was a great deal for the shareholders.
-- John O'Donnell
OK, I think this article has certainly uncovered a fishy story. Something is not right here. The only people that are really upset are shareholders, which I understand. But would they all prefer to hear this news when the SEC is investigating the company, and their shares are far more undervalued? I think not!
-- Brian Cave
I wonder how many readers that disapproved of the article knew beforehand about any of these issues. The issues you raised are important to investors! From my reading of the article, you did not say conclusively either way whether the company is up to no good. The issues reported do lead to speculation of potential trouble, but someone has to play devil's advocate. It forces shareholders to stop and re-evaluate their reasons for being in the stock. If they disagree with you, fine, keep holding the stock. At the very least, they should want answers to the questions you raised.
Keep the great articles comin'! I do not hold any position in IDTC.
-- Mark Holman
The following letters were previously posted at 1:26 EDT.
And the Problem Is...?
I don't see the problem with companies funding start-ups. This is not a conforming bank loan and it's easier if you loan the money rather than send it as capital to write off if the project goes belly-up. If there was really something nefarious going on, I would appreciate your thoughts, but in this case: So what?
P.S. I'm long
I am surprised you released this article without getting all the facts. It seems to me you were a little hasty and could have done a better job of filling in the holes.
Tantalizing as it may be, hasty journalism is not that valuable to serious investors.
Having been a public accountant for many years and understanding what you were trying to say in your article on IDT, I feel it was nothing more than a cheap shot that gives me reason to question your motives and reporting responsibilities.
I think that investigative reporting is a good thing, and corrupt companies should be scrutinized by brokers and journalists to safeguard all investors. On that point, here's credit to you, Herb!
But if you don't mind my saying so, I think you thought you had a big story you couldn't wait to publish. You should talk directly to the CEO of IDT first before going to press.
If this is a favored loan and is related, as you think it is, then you should as a responsible citizen report the matter to the
. As an investor of IDT, you have created more uncertainty and have not published anything concrete. On this count, you have failed. I await more on this story with trepidation!
I read your column on IDT. You insinuate many shady things without evidence. This is shabby journalism at the least and possibly slanderous and libelous. I had signed up for your service but now I'm going to cancel my subscription. Do you realize that what you publish may affect investors' financial health?
I as well as many others lost significant amounts of money today due to your careless "journalism." I hope that either shareholders or IDT takes legal action against you for the damage inflicted today by this crap. I wonder how many other investors will cancel their subscriptions because of your underhanded work. You will never have any of my business in the future.
Lt. Michael A. Bidus, MC, USNR
The first sentence of the article is totally misleading and certainly doesn't tie in with rest. If you want to be a shill for people like David Rocker, that's fine, but why not state that and disclose what benefits you are receiving from this relationship?
I have seen the same kind of slanted reporting once before from you with respect to
. It wasn't wrong, just misleading and slanted and, just like this story, was made public just as the stock started to gain some nice momentum. That movement was nipped in the bud by this kind of reporting.
You mention the credit line but do not say how much is outstanding. You don't tell us exactly what this company does and whether IDT has an interest in it.
Did you ask these questions of anyone? If the company doesn't exist, why didn't you speak with IDT's auditors? A $25 million line is a material item, I would think.
I plan on reporting this matter to the SEC. I am tired of your antics, and I would hope that the editor would crack down on some of this self-serving drivel.
Until today, I had a degree of measured respect for what I thought was journalism, and the efforts of your company. Yes, I am an IDT shareholder long term. However, I would be just as shocked if you had written the article on any other company, public or private. I do know one thing -- after sampling the "free trial" period with
, I will not return.
I hope I didn't pay a subscription to have articles like this written.
You guys could write pieces like this all day long about every soap opera in every company. If you really want to do this, why don't you go after the big boys?
Herb, I really miss your columns that focus on companies that are on the go, not the decline. I made money off your article on
and really look forward to discovering what to invest in.
That does it!
That last piece of trash from Greenberg re: IDT was so bad that he hurt the credibility of
. You really need to rein him in or get rid of him. That was such unbelievably bad reporting. Send him to the
. He has a future there.
continues such trash reporting, I'll pull my subscription and encourage many others to do the same.