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

To: levy who wrote (22707)	12/11/2000 11:31:03 AM
From: The O	Read Replies (1) \| Respond to of 28311

InfoSpace Inc. Cut to Near-Term `Accumulate' at Merrill By Sybil Carlson Princeton, New Jersey, Dec. 11 (Bloomberg Data) -- InfoSpace Inc. (INSP US) was downgraded to near-term ``accumulate'' from near-term ``buy'' by analyst Henry Blodget at Merrill Lynch. The long-term rating remained ``buy.''

To: levy who wrote (22707)	12/11/2000 11:41:58 AM
From: Dan Hamilton	Respond to of 28311

I read the ML downgrade. It is still a long term buy, but a medium term accumulate. Some highlights (or lowlights, as you may prefer)... The two questions hanging over Infospace is 1)whether they will sign any international wireless carriers, and 2)how much wireless subscribers are using the services. Most of their contracts have a dormancy clause - if subscribers don't use the services, INSP doesn't get paid. ML is lowering their FY2001 EPS estimates from .16 to .14. ML believes the potential share price downside is 50X 2001 EPS or $7. Staff retention is also cited as a concern. There are 31 million share options outstanding at an average strike price of $31. ON the plus side, ML cites the $360 million cash, and a history of upside surprises. They also believe Arun Sarin and Russ Horowitz are "extremely capable and seasoned" executives. FY2002 estimates are .25 for EPS.