InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 81.57

-2.7%

1:54 PM EST

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To: KLP who wrote (28234)	3/31/2005 8:00:11 AM
From: KERRY.COLLINGS	Read Replies (1) of 28311

Upgrade from JP Morgan from neutral to overweight . . . We believe INSP's investments in improved mobile distribution and content during 2004 will help the company post continued strong growth in 2005. Our channel checks indicate that ringtone downloads are growing 20% sequentially. We believe Mobile margins will stabilize in the mid-20 percent range. Based on these factors, we are increasing our Q1 Mobile revenue estimate to $37.2, reflecting 14.5% Q/Q growth. * With $284 million in cash ($7.50 per share) as of 4Q, and an additional $83 million ($2.19 per share) from the settlement of the InfoSpace derivative case in March, InfoSpace has the strongest and most flexible balance sheet of all of the ringtone competitors. We believe InfoSpace's strong balance sheet will enable it to make strategic acquisitions in both its ringtone/gaming businesses. * On an Enterprise Value/EBITDA basis, INSP shares are currently trading at 11x our F05 EBITDA estimate of $98.7M, a 49% discount to its peers which trade at 21.7x our F05 ests. Based on INSP's strong balance sheet & promising growth prospects, we believe that there could be an opportunity for multiple expansion kc

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