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StockTradersPress.com |
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A Corporate
Communications Corp. Publication ---- All Rights Reserved |
| Recomendation
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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STOCKTRADERSPRESS.COM
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(516) 656-0217 • 866-STP-NEWS • Fax (516)
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