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

To: playavermont who wrote (22800)	12/14/2000 4:52:35 PM
From: playavermont	Respond to of 28311

They said that roughly 10% of their revenues last quarter were associated with wireless.... Thats about $5.5 Million last quarter.... That is about $2 Million per month last quarter!! Can they grow that 37 fold in 3 years to $75 Million per month....???? That would be a wireless MONTHLY sequential growth rate of roughly 10% !! I would say the that is reasonable based on the fact that these services have just begun over the last 6-9 months!!!! I-mode has grown from ZERO customers 22 months ago to about 15 Million today....

To: playavermont who wrote (22800)	12/14/2000 5:39:24 PM
From: Killswitch	Read Replies (1) \| Respond to of 28311

I think the key is P/E ratio and more importantly PEG for profitable, quick growing companies like INSP. But that analyst has made a big mistake in his calculations- he is using gross margins to calculate their profits, not their net operating margins. INSP stated in their last quarterly guidance they expect maybe 18% net operating profits for 2001. So let's say that goes up to 25% by 2003, then they should have anywhere from $250mm to $400mm in profits that year based on what their revenues end up being. If they can maintain a high P/E of 80 at that time then the max market cap you could expect in 2003 would be around $30billion, or about 7-8x what it is at now. To get anywhere higher than that would require some means of taking in even more revenue.