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Technology Stocks : Interliant, Inc. (INIT)

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To: Richard Tai who wrote (1020)12/8/1999 4:49:00 PM
From: Richard Tai  Read Replies (2) of 1214
 
well now i'm quite happy to be init. from briefing...

14:59 ET ******
Interliant (INIT) 24 7/16 +3 3/16: Stock grafting off of Exodus (EXDS )+13.8%, the leading player in the red-hot web-hosting arena... EXDS
received favorable comments from Merrill analyst... Digex (DIGX) another player in the group, is up 17.8% as well... While the latter two stocks are bigger players in the field, traders shouldn't ignore INIT as it has solid relationships with tech-titans IBM (IBM) and Microsoft (MSFT)... Company also experiencing powerful top-line growth, as evidenced by last quarter's 59% year/year and 13% sequential improvement... Most of the growth has come from acquistions, as INIT moved aggressively to ramp up its presence within the burgeoning industry... Despite solid growth and relatively attractive financials, INIT trading at less than half what investors are paying for EXDS and DIGX (using p/s multiples)... As INIT integrates its acquisitions and grows its business in the quarters to come, look for under followed stock to catch the eye of more and more analysts and, more importantly, momentum traders... Significant multiple expansion likely to follow... Using an annual run rate of $48 mln in sales and a p/s multiple of 50x, Briefing.com sets 12- to 18-month price target of 55. -- PJO
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