In looking at the older 10Q's and other financial reports. INSP has learned the hard way about HR matters. Many one time payments to ex employees in lawsuits, and INSP is being sued by Milber Wiess and many others.
Jain has since cleaned up his act. The company has given pretty clear metrics to judge the company by. They have removed all but recurring guaranteed revenue from all future projects, got rid of barter income taken write downs with investments, and all around are now towing the line.
Jain is selling less than 1% of his holdings and has scheduled to do it in the only fashion acceptable for insiders. Announce it, schedule it, and then sell it in equal amounts over equal intervals of time.
I have announced that I hold long term position in INSP and sold a very large trading position before the end of last year.
INSP is a long term play. They have cut costs to hang on and survive until the wireless web can take off. They are pricing themselves right to acquire market share in this down economy. They have a clear winner in Authorize.net and the other metrics are growing (not the wireline search engines though). I don't know if I put any more money into this stock at the moment. I don't think it should have a market capitalization of 3.4 x revenues. Not yet.
After the last cc I thought this stock would go back to the 1.70's range and asked opinions about what people thought on Yahoo about the 1.40's. I did not get any responses, thought out or otherwise.
This company is very interesting, its CEO is interesting, and many of the holders on these boards are very emotional over this stock. It is hard to get objective digression as people either love it or hate it...
The no debt and good books you talk about....I like that too but you cannot get away from REVENUES....REVENUES.
INSP guided down from over 214 million to 109 million for 2002 end of last year. They moved that up to 115 million this last quarter. It was shrewd to only project the guaranteed recurring income and hopefully they can move that bar up through out the year.
I may jump back in big for a trade if we touch under 1.50's, if we go under 1.40's I will take a piece for sure, and if we go any lower, I'll watch the volume and movement and see if it goes lower then I'll start backing up the truck if all things being equal, there is no explanation for the downward movement.
Otherwise, I watched it climb to 2.74 not too long ago and was able to stay away as the real 'turning the corner' for this company is when the economies of scale kick in with their wireless web products and the profit margins start to climb again. Profit margins have slid from high 70% to low 70% and now the latest was about 64%. You will know when INSP is making it is when you see profit margins climb again. Revenues are essential for all companies.
Growth companies can be excused revenues only so long. INSP has been excused for a while now. Investors want that carrot. INSP is still a great story with a lot of potential and at lower prices and excellent takeover or stand alone investment play.
At these prices, it is a good long term play.
I think ultimately INSP wants to be that infrastructure for wireless broadband web.
They will use the query searches for income to get them through this period but will not put a huge effort into making that work. It is needed for now, but not for later. The overhead and market renewal type of work is too costly for the INSP business plan. JMHO |
