iPass, Inc. (NASDAQ:IPAS)

CAPS Rating: 5 out of 5

The Company provides software-enabled enterprise connectivity services for mobile workers.

Recs

6
Player Avatar XTMFJordan (75.37) Submitted: 7/28/2006 12:07:54 AM : Outperform Start Price: $3.92 IPAS Score: -46.42

You are on the road. You need Internet access. Who are you going to call? Well, if you are many enterprise IT organizations, you will call IPAS (iPass Inc.), who provides the infrastructure for dial-up, high speed wireless, and high speed wired access for travelling business people.

IPAS doesn't currently sport the best income statement or balance sheet, but it has the opportunity (with a little work to turn things around). While management has been complacent in the past, the Shamrock Value Activist Fund (an arm of the Disney family trust) is putting significant energy into trying to shake things up. And they seem to be getting results with IPAS announcing needed layoffs and restructuring of the business.

With net cash of $110M on the balance sheet and 65M shared outstanding we are looking at $1.70 a share of cash. With the stock trading at $4.96, we are getting each share for an "actual cost" off $3.26, which improves the trailing P/E from 41 to 27, and the forward P/E from 26 to 17. These numbers are much more attractive and make this stock definitely more interesting.

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Member Avatar HardyBoyDan (49.19) Submitted: 1/30/2007 1:22:29 PM
Recs: 0

If you are smart you will realize this is a declining business (why not just go to a starbucks and use the WiFi?). All the profitability is on the legacy dialup side. See analysts comments (including Credit Suisse). There's a reason the stock is down and staying there. Don't try and be too clever here.

Member Avatar XTMFJordan (75.37) Submitted: 6/5/2007 2:42:13 PM
Recs: 0

Hey Hardy -

Quick question: when I go to Starbucks, who do I use to manage my connection with the WiFi? Answer: IPAS!

IPAS is providing a place to manage the roaming Internet access for corporations. This makes it so I don't have to manage the various account (or more important IT doesn't) for roaming internet access.

Shamrock Advisors - some very smart folks - are in IPAS and see it as having a good value proposition which will be brought to life by shareholder activism.

So, does this change your thinking?

Member Avatar QwertyHero (< 20) Submitted: 8/25/2009 7:25:03 PM
Recs: 0

no, but $0.32/share dividend does!

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