The market appears to be telling us that the jury is still out on the execution issue. ELMK, ONEM and MSPG are currently being valued at $1,181, $1,104 and $1,719 per subscriber, respectively. Arguably, MSPG is overvalued, as least relative to ELNK and ONEM. I would also venture that ONEM, as a percentage of its stock price, has more cash than MSPG. By acquiring subscribers through acquisition at $300-$500 each, ONEM is building long-term value.
I think that MSPG has historically traded at a premium to the other ISPs because they were closer to profitability than their competitors. However,the more knowledgeable participants at the conference seemed to feel that it was more important at this point to grow the subscriber base. Reviewing their press release, this seems to have registered with MSPG. |
