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| StockTradersPress.com |
| A
Corporate Communications Corp. Publication ---- All
Rights Reserved |
| Long-Term
Report |
August 14, 2003 |
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| STRONG BUY |
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| InfoSpace, Inc, (Nasdaq)
INSP |
$ 14.09 |
| 52-week range |
$3.75-$16.89 |
| Market Cap |
$438.4M |
| Shares Outstanding
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31.2M |
| Book Value |
$13.91 |
| Price/Book |
1.01 |
| Average Daily Vol.
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380K |
| Target Price |
$20.00 |
| Target Percentage |
42% |
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| InfoSpace, Inc.
provides wireless and Internet software and application
services both nationally and internationally. The company
provides its services across multiple platforms which
include personal computers, PDA’s and cell phones.
Additionally, InfoSpace, Inc provides
services to merchant (bill paying) and financial institutions. |
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| We
consider InfoSpace, Inc. as an attractive participant
in the fast growing Internet services area for the following
reasons: |
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- The company continues to register revenue growth
of 15% or better, as it expands its business services
particularly in the merchant sector.
- The capital needs of the company are small. Consequently,
InfoSpace, Inc. continues to reflect strong
net positive cash flow. During the second quarter
ended June 30, 2003, the company added $13 million
to cash, As of June 30, 2003, InfoSpace, Inc.
had cash and equivalents of $301 million or $9.70
per share. The company has no debt.
- The company reported a net loss of $0.48
per share, which included non-recurring charges of
$0.57 per share. Thus, the company had an operating
profit of about $0.09 per share.
- At the present time InfoSpace, Inc. has a book
value of $13.90 per share and cash per share of $9.70
per share.
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| We
believe InfoSpace, Inc, is an undervalued stock, which
is selling slightly above book value. Given the sizeable
cash on the company’s books and its minimal capital
expenditure, it would not surprise us that the company
would institute a dividend. |
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We
recommend InfoSpace, Inc. at its current price of $14.09
per share and establish a target price of $19.00-$20.00
per share. |
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