Internap Network Services (NASDAQ:INAP)

CAPS Rating: 3 out of 5

The Company markets products and services that optimize the performance and reliability of strategic business Internet applications for e-commerce, customer relationship management, multimedia streaming, VoIP, VPNs and supply chain management.

Recs

3
Player Avatar NeroSagetrade (91.74) Submitted: 4/9/2008 12:52:19 AM : Outperform Start Price: $4.70 INAP Score: +51.48

Internap Network Services very simply provides larger companies with complicated networks a faster route to get information through their servers. Although this is a very competitive space, the fact that INAP is down over 75% in the last few months seems hardly justified. INAP is trading at below 0.7 times book value and a mere 7.3 times forward price to earnings estimates. Revenue growth is slated between 17-20% over the next 3 years and the company has ample cash stockpiled, roughly $1.20 per share after debt. They could do a buyback here to improve EPS or possibly even get a buyout offer at these levels, but one thing is for sure, it won't stay this low for long.

Nero
Sagetrade

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