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Strategies & Market Trends : Value Investing

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To: Don Earl who wrote (16129)1/10/2003 1:55:02 AM
From: Don Earl  Read Replies (1) of 78565
 
I've mentioned Interland (INLD) a few times in the past year. (At higher prices) The transcript of their most recent conference call is available online:

sec.gov

The CC pretty well outlines where they are and what their objectives are for the next several quarters. The company has about $135 million in cash and $25 million in debt, with 140 million shares outstanding. Cash burn is currently around $2 million a quarter from operations. They're in the process of consolidating companies acquired over the past year, which they expect to be complete within 6 months. Projected savings are expected to result in Q4, ending in August, free cash flow positive in the neighborhood of $3 million.

They have an acquisition on the table, which should close in March, that is already free cash flow positive and will increase their customer base by around 10%.

The stock closed today at the lowest level it's been since September 2001 at $1.18. For what it is, I think there's a lot of upside potential over the next several years if they even come close to executing on their business plan.
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