InfoSpace (INSP): Where GNET went! Message Board

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

INSP 73.65

+2.2%

3:59 PM EST

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To: White Shoes who started this subject	2/8/2001 5:45:33 PM
From: David Howe	Read Replies (4) of 28311

Can we please get back on the subject? INSP has huge potential. It's basic math. Forget about all of their merchant and consumer businesses and focus on the wireless potential. INSP makes between $1 and $2 per customer per month. They are gaining customers very rapidly. There are projections that wireless subscribers could total 1 billion by 2004 or 2005. Let's be conservative and say that it takes longer than this and the count only gets up to 500 million by that time. Let's say that INSP only gets 30% of these users as customers even though they have an 85% market share in the US right now. Basic math: 30% of 500 million = 150 million users 150 million users x $1.5 per month x 12 months = $2.7 billion in revenue $2.7 billion in revenue. That's massive growth. If they have a 25% net margin that's $680 million in earnings per year or approximately $2 per share (EPS). With a PE of 50 and EPS of $2, you could see INSP trade at $100 per share. That's a nice return from the $5 per share it trades at right now. $100 per share for INSP in a few years. That's the potential from wireless alone, not including the merchant and consumer businesses that have additional potential. Sure, the above projection might seem opptimistic, but 30% market share is fairly conservative if you ask me. Whatever your opinion on that is, you must realise that even if they are only 1/3 as successful as assumed above the share price could reach $35 or so. That's a 600% gain from today's price. Dave Note: This is the potential for INSP based on today's fundamentals and the growth of the wireless industry. There is no guarantee that INSP will achieve this level of success, although it is my opinion that they will.

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