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Technology Stocks : Interliant, Inc. (INIT) -- Ignore unavailable to you. Want to Upgrade?

To: Kim Carter who wrote (654)	8/6/1999 12:46:00 AM
From: AlienTech	Respond to of 1214

>>WHY DOES INIT CONTINUE TO SLIDE? << Heck if I know.. At times like these when I get conflicting stories, ie I hear stories that I know are untrue from people in the know.. (eg bloodguts) I ignore the noise and look at the information I have and what I can see. it is the only thing that will keep you sane when you are sitting at a loss, if your info says sell then get out. If it says buy then buy, if it says well good chance it will double from here and I will get my money back and more if I just hold it 6 months and the downside seems limited, then hold. good example was NETA, company kept putting out spins to mask all the true problems and the analyists all went with it. But I saw huge selling/shorting going as well and the shorts were having a field day. Kept averaging all the way down until they came out and said oh yea we did nothing wrong and we didnt know, when it was very clear they did know. I sold for a whopping 75% loss and bought other things. Will never go back no matter what. But it shows none of the analyists have a clue and the management will do what they can to get their friends out first. Only reason I am still in INIT is due to their filing the employee stock options for 17+ range. And in doing it so fast has to belive something is in the works and they di dnot expect the price to go lower than 16-17 before earnings and no bad news in the works. >> By: wannabetrader Has anyone gone to www.ml.com and read Blodget's report on INIT? (you have to register for their free research though) Looks like I was right about the flat revenue growth. They have none. Zip. Zilch. ZERO internal revenue growth. Well, maybe a little. But not much there. Blodget's report states that INIT is growing their revenue through acquisitions and that he's looking for INIT to grow their internal revenues (which according to him is well below the industry average, essentially none) over the next 2-3 quarters. He sees flat revenue growth in the core business over the balance of 1999, and 3%(!!) sequential revenue growth in core businesses for the rest of 2000. (due to the management being busy with M&A activities and consolidation and such) He also said that his rating on the stock and his price target was conservative, but that INIT's current valuation (at 16 3/8 the time the report was issued) was "aggressive. INIT is well poised to take advantage of the huge potential in the web hosting sector and apps hosting... The web hosting part of INIT's business apparently is not as important as the applications hosting part...the apps hosting is a much larger, faster growing market, and is also a higher margin business with less turnover. Applications hosting companies also trade at a higher multiple than basic web hosting companies...so if INIT can grab more of that market, their price/sales multiple will inch higher... the basic gist of the report was: the web hosting sector is huge the apps hosting sector is huge INIT needs to grow their internal revenue growth INIT needs to consolidate their businesses ...and we're gonna be sitting on this stock for a long-ass time until they can prove that they can execute. he said there is a possibility of an upside to the earnings announcement on august 11 (he specifically states this in the report), so maybe if there is some kind of improvement in internal revenue growth, or progress ahead of what he expects, I can see a possibility of a price target increase. btw, CIBC world markets initiated with a target price of $24. he did mention that INIT could possibly have a strong stock going into the 4th quarter when the internet/e-commerce stocks are always strong. but a lot to think about for you guys calling for random pie-in-the-sky type of price targets and bashing Blodget for his price target WITHOUT BOTHERING to read his report. (or the prospectus, as I'm sure many of you have not bothered to look at that either). No wonder the stock tanked, if I had read that report ahead of time, I wouldn't have bought at $16 on the IPO day, would've waited for $12-$13 level.