InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 124.52

-2.2%

12:59 PM EST

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To: Larry Zenith who wrote (13132)	10/21/1999 10:38:00 PM
From: jim	Read Replies (1) of 28311

Here's the full or should I say full of it text; This operator of financial and games Web sites is selling for $54 per share, or a total market cap of nearly $1.5 billion. But that is more than 100 times its revenues — and an infinite multiple on earnings, which are non-existent. Though the company does have positive cash flow from its operations, why that flow should be any more valuable than cash from, say America Online, is a mystery. AOL, for example, is currently selling for around 100 times cash flow, suggesting that GNET, which will likely end up with somewhere around $4 million of FY1999 cash flow, ought to be selling for $400 million, or somewhere around $15 per share. That works out to not much more than the stock's current book value of $12 per share — book value that would itself be non-existent except for the fact that Paul Allen's Vulcan Ventures pumped $450 million in convertible preferred stock into the company at a spectacular 50 percent discount from the market price for the common — suggesting that even the company didn't think its stock was worth more than $33 per share.

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