IDT Straight Path Communications Lawsuit
October 9, 2023
IDT announced a favorable ruling related to the outstanding Straight Path Communications lawsuit. This is a major positive as the judge ruled that IDT owes the plaintiffs nothing and that Howard Jonas had to compensate the plaintiffs in a nominal amount. This is truly a best case scenario. The next key question is will the plaintiff appeal the ruling and what is the timing on the appeal. I’m digging into both questions. Nonetheless, a major overhang has been removed and IDT should be unshackled to re-rate higher. The stock is very cheap on a consolidated basis (7x EBITDA) and dirt cheap on a SOTP basis ($46 conservative SOTP).