Where do you think the remaining $209 million in cash might be?
Btw
I have no position in INSP.
<<InfoSpace, the Bellevue-based wireless and Internet services company, has received a warning that its stock listing may be removed from the Nasdaq Stock Market.
The company, which had a high profile during the Internet boom, has 90 days in which to boost its share price above $1 for 10 consecutive days or lose its listing.
InfoSpace's daily closing price has been below $1 since May 21, and Nasdaq sends warnings to companies whose shares remain less than that for more than 30 consecutive business days.
The delisting notice is arguably a crippling blow for the company's stock, which at its height traded for $130.53 per share. At that price, the company was valued at more than $30 billion.
Founded by Chief Executive Naveen Jain, InfoSpace grew through a series of ambitious acquisitions, the most high profile of which was a merger in 1999 with Go2Net, a Seattle Internet company.
But the company's business of providing directory, search and content services to Web sites declined as the huge market of Web site customers burned out. By then, InfoSpace had tied itself to the growth of the wireless Internet, which has failed to take off in the U.S.
Yesterday, InfoSpace's shares closed at 51 cents, after rising 10 percent, or a nickel, during the day. A recent report by CNN/Money found that InfoSpace was the biggest loser on the Nasdaq — suffering the greatest loss in market capitalization — since the market peaked on March 10, 2000.
"It's not a big surprise with current prices," InfoSpace spokesman Steve Stratz said of the delisting warning.
"But we feel that we have a lot of options which our board of directors is looking at. You'll see some action within the 90 days obviously."
The company could do a reverse stock split or buy back the stock from the market, but those actions do not guarantee the stock price will rise above $1.
Even as the tech sector's downturn sent the company's stock into a tailspin, other blows this year have pummeled InfoSpace. New York state investigators found an e-mail from a Merrill Lynch analyst that referred to InfoSpace as a "piece of junk" while the broker had given the stock its highest "buy" rating.
InfoSpace also recently lost Verizon Wireless as a customer to MSN, Microsoft's portal, and a class-action shareholder suit against the company continues.>>
seattletimes.nwsource.com |
