Internap Network Services (NASDAQ:INAP)

CAPS Rating: 2 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

1
Player Avatar msamet1 (96.24) Submitted: 3/7/2007 10:46:58 AM : Underperform Start Price: $17.61 INAP Score: +113.59

poor performance since IPO; recent reverse splits have done nothing to increase per share value

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Member Avatar derwin24 (83.24) Submitted: 10/23/2007 10:40:08 PM
Recs: 0

Is this guy serious? The reason for doing a reverse split has little to do with the well being of a company or designed in any way to have an effect on the per share value. Besides, the stock price has only continued to increase since the reverse split. The company itself has continued to expand since the reverse split; they continue to increase their number of client's, thus bringing in more revenue. The safest option, of course, is to wait until after the earnings report to make a decision on the stock. But for those watching a few different stocks who are willing to take the risk for potentially high rewards, then this is the stock to invest in -- this is the time to invest in it.

Member Avatar msamet1 (96.24) Submitted: 1/7/2008 4:44:51 PM
Recs: 0

I'm serious because I bought this stock at the advise of Mr. GRUBman who earned my money at SmithBarney. Its a laggard in its sector and has done nothing to INCREASE ENTERPRISE VALUE in any way EXCEPT reverse split the stock.I would not own this stock again because it has nothing to offer in a competitive sector with better financed players. Where's the BEEF???????????????

Member Avatar derwin24 (83.24) Submitted: 1/16/2008 8:43:15 PM
Recs: 0

Granted, I believe you got lucky with this Underperform pick; however, you were right. For now.

More than likely, though, you would have been very wrong if the housing industry didn't tank along with current recession fears. Fear of the overall market is what drove the price of INAP down, not the last earnings conference call. Regardless of the recent price drop to the $6.50-ish range, this won't change the very bright future InterNAP is STILL heading toward:

The fact is InterNAP is continuing to grow at a rate of 25% per year, they are increasing margins, and the company is just now becoming profitable.

The company has, as James Deblasio mentioned on January 14, 2008, the "cleanest balance sheet in the industry", clean AR, growing margins, growing top line rev (25%), growing cash flow (20% of revs), and growing Colo expansion rent ($65 - $70 per sq foot).

Furthermore, have you noticed what's been happening recently in regards to INAP? The upgrades? Your decreasing CAPS score on INAP? The last five days of trading should have raised a pretty big (and flashing!) red flag for you, indicating it's probably time to end your underperform pick. That is, if you've been following current news related information and analyst upgrades for INAP; if you did that, then you should have seen this increasing price coming at you like a freight train on steroids.

INAP is up 24% in the last five days.

We're looking at a current price of $8.06, up from $6.50 just five business days ago. This upward trend, I think, is not even close to being over with.

At any rate, feel free to continue underperforming this stock. You'll only lose more points in CAPS, and worse, you will miss a beautiful opportunity to make some money riding INAP back up to $13, $16, and hopefully even a price of $20 in the near future (1-2 years).

Worst case scenario -- INAP goes back up to $10-13 in the next few months.
Best case scenario -- INAP reaches $20 in the next couple of years.

Member Avatar msamet1 (96.24) Submitted: 1/18/2008 3:54:20 PM
Recs: 0

I wish you all the success you can muster to wait for INAP to rebound. I have placed my "bets" on other horses. This particular niche is for those who know the players.I'm not sure anyone really knows the players when it comes to internet services/software/hardware.

Member Avatar derwin24 (83.24) Submitted: 1/26/2008 9:41:45 PM
Recs: 0

Fair enough. You did Underperform INAP at an excellent price of $17.61, and it's likely to take another year or so before Internap will see that price again. However, I've been following INAP very closely for about five years now, and I'd say the only real issue with INAP is it's lack of publicity. It isn't a very well known company, and unfortunately, some people erringly pitch INAP as a straight CDN enterprise, competing only with AKAM and other primarily CDN businesses; however, there's much more to Internap than that:"The company provides patented and patent-pending technologies that address the inherent weaknesses of the Internet, enabling enterprises to take full advantage of the benefits of deploying business-critical applications such as e-commerce, VoIP, and audio/video across IP networks. The company provides additional solutions, including video and audio streaming, advertising placement, reporting and analysis, live event broadcasting, media asset management, integrated Web hosting and consulting services."I'm sure there's even more services they continue to expand that I've left out (such as their increasing Colo expansion) -- you get the idea. But that's not all:Internap has a successful and growing legacy of intellectual property and patented technology for maximizing the network performance and efficiency of Internet-based applications and content. And they continue to successfully develop new patents to increase their competitive advantage in that area, and others not yet mentioned. Internap is also very well positioned to take advantage of the growing world markets too. They have added additional capacity in Europe and are working on adding capacity in Asia, such as China, a quickly developing nation expected to exceed internet use in the United States very soon -- Internap recently completed its global CDN expansion presence in Hong Kong and Tokyo. Additional sites will expand access to Internap's network architecture, known as Private Network Access Point (P-NAP), which manages traffic to improve the performance of Web-based applications....need I say more?

Member Avatar msamet1 (96.24) Submitted: 1/31/2008 4:48:15 PM
Recs: 0

so where's the BEEF????????????????

Member Avatar iChris (31.67) Submitted: 2/7/2008 10:33:43 AM
Recs: 0

Beef is still with the cow. Check back tomorrow please.

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