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Microcap & Penny Stocks : INSP Investors Research

INSP 139.89

+3.8%

Dec 4 3:59 PM EST

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To: howsmydrivingal who started this subject	9/4/2001 12:13:26 PM
From: howsmydrivingal	of 787

Recently read post from another board. Taking it for what it is, another investor tries to understand the cash position as relative to current valuations... Author: jimglenrit Number: of 5631 Subject: INSP Valuation - Cash and Investments Date: 8/29/01 1:21 PM Post New • Post Reply • Reply Later • Create Poll • Post News Report this Post • Recommend it! Recommendations: 5 Wall Street sure does not have confidence in INSP or Jain. I took a look at the June 30, 2001 10-Q. INSP between Cash on Hand, Short Term investments and long term investments (available for sale - assuming liquid) has $343m available. In addition, they have another $30m in accounts and payroll tax receivable. Based on the 10-Q there are 325m shares outstanding this brings liquidity of $1.03 per share excluding receivables and $1.15 including receivables. Current book value (assets - liabilities) of $1.1b brings book value per share to $3.40, this bring a price to book value ration (P/BV) of 0.35 Where INSP is getting clobbered by Wall Street is in the Price/Sales and Price/EPS ratios. With a project sales of $150m that derives $0.46 sales per share that derives a price to sales ratio of 2.6. The PE ratio is meaningless with a loss. Wall Street has no confidence that INSP can manage a Return on its assets (ROA or ROIC), and rightfully so, as of yet INSP management has been unable to leverage its assets or investments to boast sales, let alone generate a profit. I my opinion this company is ripe for a takeover with new management who can leverage the company assets and investments to boast returns (ROIC, ROA). The balance sheet indicates the assets are their to "pay" for the aquistion. An aquisition candidate could include MSN, AOL as a platform for broadband and wireless. The above are my opinions. The message is not ment to ignite rumors of any sort!!! Jim Glenwright

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