Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: levy who wrote (20722)	8/11/2000 1:35:02 AM
From: KLP	Read Replies (2) \| Respond to of 28311

Don't think this was posted yet either....Also, thought I saw when the deal was announced, that the GNET brand would be kept on some things.....but can't find that in the articles....Does anyone else remember seeing that? I have added bold to some of the sentences below....if I could, would make in very large letters the comment: "We believe that the addition of Go2Net, one of the Internet’s most profitable companies ..."....and probably hire a plane to drag these words in front of Wall Street..... KLP america-invest.com Answer to your question on InfoSpace Wednesday, Aug. 9, 2000 15:38 PDT By Jim Woods, America-iNvest.com Click here to pose a question. You asked, and here is the Expert’s answer to your stock question as provided by equities reporter Jim Woods of America-iNvest.com. -------------------------------------------------------------------------------- Question: M.A. asks, “InfoSpace has certainly had its ups and downs this year. Now that it’s acquired Go2Net and has Paul Allen behind it, is this a good time to buy?” InfoSpace Inc. (INSP) Recent price: $31.375 52-week range: $9.219-$138.50 InfoSpace is a global Internet information and infrastructure services company that provides enabling technologies to Web sites, online merchants and makers of wireless devices. As you point out in your question, the big news was the company’s July 27 announcement that it would acquire Internet portal and infrastructure technology firm Go2Net (GNET), which is 30% owned by Vulcan Ventures chairman and Microsoft (MSFT) co-founder Paul Allen. At the time of the announcement, several analysts weighed in with bullish comments on the deal. Dresdner Kleinwort Benson analyst Panigrahi Prabhas said that the acquisition of Go2Net will “significantly strengthen InfoSpace’s long-term competitive advantage.” Abhisek Gami, who covers the stock for William Blair & Co., said, “We believe that the addition of Go2Net, one of the Internet’s most profitable companies, looks good and is only the first step in the company’s expansion into the emerging broadband market.” (Go2Net has relationships with several broadband partners, which is one of the reasons InfoSpace was so attracted the deal.) (INSP) So why has the stock done so poorly over the past several months? Well, stocks, like people, tend to move in groups. The Internet sector has been hammered since March, and InfoSpace is one of the stocks whose name and business is synonymous with the Web. It’s not surprising then, that despite solid earnings, growing revenues and aggressive expansion, the stock has reacted poorly over the period. Add to that the recent bearish remarks by Merrill Lynch Internet analyst Henry Blodget on the whole Net sector and you can see how investor perception is to run from stocks in the space. Curiously, though, one of the few Internet stocks that Blodget maintained his buy rating on was InfoSpace. Does that mean you should buy the stock now? It’s hard to tell if this is the bottom or whether the stock is still headed farther south. But with one of the top Internet analysts (Blodget) and one of the men who virtually started the new economy (Paul Allen) in its corner, I wouldn’t bet against it.