In Support of Inrange
By Michael Falbo
Special to TheStreet.com
3/7/01 6:32 PM ET
Last week, I took a much-needed vacation that just happened to coincide perfectly with a complete and total void of expiring lockups. Well, I'm back and I brought some lockup expirations with me.
The stock to keep a lookout for this week is Inrange Technologies (INRG:Nasdaq - news - boards), a company that manufactures switching and networking products in Mount Laurel, N.J. The stock has suffered like many other tech IPOs of last year, but Inrange has got a few things going for it.
First of all, it has managed to gain heavy support from its parent company, SPX (SPW:NYSE - news - boards).
On Feb. 28, SPX announced that its board approved a plan to repurchase up to $50 million worth of Inrange stock. I know this sounds like the same old song and dance, but it may also indicate that SPX believes that Inrange is undervalued. Many of you may view the announcement as pure propaganda, but SPX has a good reason to return to the profits.
In its latest earnings report, Inrange beat analysts' estimates by 2 cents. The company posted fourth-quarter earnings of $7.4 million on revenue of $71.1 million. How many IPOs in the last six months can say that they beat estimates, let alone are profitable? I can think of very few.
Most importantly, I assure you that Inrange's ability to continue to increase its profits hasn't gone unnoticed by major institutions. As an investor, I would wait until the dust clears for the lockup expiration on March 20, and take a solid look at Inrange.
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