Patrick,
Thanks for the reply on INAP. The comparison you make with RMBS may be apt, particularly since INAP has the unfortunate predicament of forecasted losses at least through this year and next. In the current market environment, there are relatively few willing to look that far into the future. Without immediately visible earnings and imminent good news, stocks are being dumped regardless of their long-term prospects. The stock has also been hurt by significant insider sales during a recent secondary offering -- besides putting more shares out into the market it encourages doubts and fears about the company's prospects. Perhaps the company is being judged unfairly, but in conjunction with a falling stock price, more blood draws more sharks while potential buyers hold back.
My recent bargain-hunting has focused on two value-growth tech companies: Global Light Telecom (GBT) and Alliance Semiconductor (ALSC). Not bleeding edge technology, but undervalued with growing technology assets -- kind of Warren Buffett with growth. The growth story in both cases looks good, but an important consideration, particularly in the current market climate, is that both companies own assets worth substantially more than their market cap. I think the recent shocks to the market should favor companies with clear "show me the money" stories.
Though the asset values may decline if the NASDAQ continues to fall, having a significant discount from asset value should provide some cushioning on the downside and a spring effect on the recovery.
Good luck,
Baird |
