Hi Jake,
Long time no talk. Would this one fit here?
I welcome comments.
INPH Interphase Corp
iphase.com;
Market Capitalization $124.6M Shares Short: 1.47M
Shares Outstanding 5.81M Percent of Float: 58.6%
Float 2.50M Inst. Ownership: 26.0%
(61% of float)
biz.yahoo.com
I believe it was unfairly beaten down from the mid $40's on news of a possible severed link between Interphase and HP. Currently it trades @ $21.
Interphase Corporation designs and delivers high-
performance connectivity adapters for enterprise server
network environments and demanding embedded systems
applications. The company is a respected leader in
designing robust and reliable interfaces for local area
network (LAN), storage area network (SAN) and wide area
network (WAN) environments, utilizing technologies that
are laying the foundation for networks in the 21st
century, including ATM, Fibre Channel, remote access and
virtual private networking (VPN) protocols.
On Dec23, INPH announced that it lost a potential sale to one of its biggest clients (HWP). However, I don't believe the selloff from nearly $45 on the news is justified. There could be a serious bounce in the works, especially if the next earnings report is good. Earnings aside, INPH will likely fare well going forward as was indicated, but apparently overlooked by the market at the time.
CEO, Kalush commented on Dec 23rd:
We believe that our relationship with Hewlett Packard will
continue to expand in 2000. Hewlett Packard has informed
Interphase that it ranks among its highest quality
suppliers. Interphase will continue to develop a broad
range of high performance solutions for Hewlett Packard.
In addition, we remain optimistic about the success of our
next generation Fibre Channel products to be released in
the first quarter of 2000.
I would imagine that if the impact from the lost HWP business was that much of a big deal to the company, and if it was going to severely hamper profits going forward, that Interphase would not be looking to hire additional staff. However, they are currently seeking to fill 21 positions.
iphase.com
I can't imagine that INPH would not be able to successfully market their technology and products to other huge customers in the future. I'm no networking guru, but from the way I see the industry trending, there will be huge increases in the need for network memory and storage, and this is where INPH fits in.
Applications such as data warehousing, data mining, on-line
transaction processing (OLTP), and multimedia Internet and
intranet browsing are resulting in the near doubling of
the total storage capacity shipped on an annual basis.
International Data Corporation has estimated that the
typical Fortune 1000 enterprise will experience storage
needs that grow from 20 terabytes in 1997 to over 300
terabytes by 2001. This, combined with a significant
reduction in storage costs over the last decade, is
fueling a market that is growing by 85% annually and is
expected to top $2 billion by 2002.
iphase.com
Maybe you networking wizards can help me out here. Seems to me that JNIC jni.com is an INPH peer. If so, the graphical comparison is sort of sick.
While they have both been in sort of a down-trend in the last month or so, JNIC is rebounding nicely, as INPH seriously lags. What is the market waiting for? A confirmation in the earnings report (due Feb7) for INPH??
siliconinvestor.com
Low float, high short interest and a potential upside earnings surprise, combined with the fact that 50% has been shaved off of the INPH share price in the last month, can make for a potentially explosive move back up, IMO. I have been accumulating since just under $26 and will continue to do so into the high teens before I throw in the towel.
regards,
B |
