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

To: silversoldier a/k/a SI Sy who wrote (23435)	1/22/2001 5:39:54 PM
From: swisstrader	Respond to of 28311

From TheStreet.Com: Departures Shake InfoSpace Investors By George Mannes Senior Writer 1/22/01 4:03 PM ET Investors weren't happy about the info coming out of InfoSpace (INSP:Nasdaq - news) on Monday. After the Internet content infrastructure company announced the replacement of its chief executive, chief operating officer and chief financial officer, shares in InfoSpace tumbled $1.88, or 21%, to trade at $7.03. With the company a week away from announcing its earnings for the fourth quarter ended Dec. 31, and with InfoSpace likely to update investors on its expected 2001 financial performance, investors were clearly shaken up by the group departure, no matter how innocuous the given reasons for the changes might be, and no matter what the job-changing executives might have said about their continuing service to the company. "I don't think it's a positive for the stock," says Matthew Adams, research analyst at Epoch Partners. Adams, who initiated coverage on InfoSpace earlier this month, says one of the reasons he has liked the company is that it had expanded its management. "This move today is, in a sense, a step backwards." Adams, whose firm hasn't done underwriting for InfoSpace, put a 12-to-24-month price target of $20 on the stock. Epoch doesn't assign ratings to stocks. Reassuming the role of CEO will be Naveen Jain, the energetic Microsoft (MSFT:Nasdaq - news) veteran who founded InfoSpace and who, on a Monday afternoon conference call with analysts, spoke more than once about InfoSpace's pace of seven-day, 16-hour work weeks. Departing CEO Arun Sarin, who will stay on as the company's vice chairman, joined InfoSpace last April, leaving a top-level position at wireless carrier Vodafone AirTouch. Sarin, who says he's leaving because of obligations to his family based in the San Francisco area, was seen as key to InfoSpace's efforts to sell its services to large wireless carriers, says Adams. Russell Horowitz, founder and former chairman of Go2Net, which InfoSpace acquired last year, is yielding his positions as InfoSpace COO and director to become executive consultant and adviser. In a Monday research note, Merrill Lynch analyst Virginia Genereux wrote, "We believe InfoSpace loses critical management and industry expertise with the diminished roles of Sarin and Horowitz. We believe these moves are troubling, as management stated their commitment to the company." Genereux has an accumulate, Merrill's second-highest rating, on the stock; Merrill was an adviser to Go2Net in the InfoSpace deal.

To: silversoldier a/k/a SI Sy who wrote (23435)	1/22/2001 6:18:39 PM
From: KLP	Respond to of 28311

UPDATE at 4:25 ET....UPDATE 1-InfoSpace announces management shake-up (Recasts, updates with details, comment, background) nasdaq.com BELLEVUE, Wash., Jan 22 (Reuters) - InfoSpace Inc. <INSP.O>, the once-high flying provider of content and services to Web sites and wireless devices, on Monday announced a management shake-up that included reinstating founder Naveen Jain as chief executive. Jain, who handed the reins to cellular telephone industry veteran Arun Sarin last April, said he would take back control of the Bellevue, Wash.-based company due to Sarin's desire to spend more time with his family in the San Francisco area. In addition, InfoSpace's chief accounting officer, Tammy Halstead, would replace Rand Rosenberg as chief financial officer, while general counsel Ed Belsheim would become the chief operating officer. Belsheim succeeds Russell Horowitz, who was chief executive of Web site network operator Go2Net before the company was bought by InfoSpace last year. InfoSpace, which has tumbled about 95 percent from its year high of $138-1/2 last March, fell $1-25/32, or 20 percent, to $7-1/8 in mid-afternoon trading on the Nasdaq following the announcement. Jain tried to reassure analysts that the moves would not distract the company in its drive to be a major Internet and wireless player. "At first glance, it seems like there are lots of changes in management. But the facts are that very little will change from the perspective of the business and employees," Jain said in a conference call. Sarin would focus on InfoSpace's growing wireless business and international strategy from his position as vice-chairman, Jain said. "He could not sustain his pace as InfoSpace's CEO and meet his family obligations," Jain said. "What we need are people who are going to be here working 16 hours a day, seven days a week," Jain said. Jain declined to comment on the company's earnings outlook ahead of its scheduled Jan. 29 fourth-quarter financial results report. InfoSpace, which supplies Web sites with things like Yellow and White Pages directories, maps, news and stock quotes, last month reiterated its guidance for fourth-quarter revenues of $66 million, and quarterly pro forma net income of $4.9 million. ((Scott Hillis, Seattle bureau, 206-386-4848; scott.hillis1@reuters.com)) REUTERS Rtr 16:25 01-22-01

To: silversoldier a/k/a SI Sy who wrote (23435)	1/22/2001 7:37:33 PM
From: Sarkie	Respond to of 28311

Sy I think you have just gone from Geezer status to Intelligent Geezer status. (Not that you weren't intelligent before) You have just made some very insightful points.

To: silversoldier a/k/a SI Sy who wrote (23435)	1/22/2001 8:27:53 PM
From: TH	Read Replies (1) \| Respond to of 28311

SSA/K/ASISY, Very insightful. I am most upset because I didn't think of it. The counterpoint is that this information could have been delivered during the CC. Earnings would be out, and if they were bad, then the negative effect of this news would just be part of the wash. So my counterpoint is actually a supporting point, and that is why I think you are correct. Then again, if earnings are very good, then this news could have been presented as a "transitional move" to insure that future earnings would also be positive. It would seem to me that if they had something very good next week, then this bit of cold news could have been served up with the hot earnings/deals and negated each other. As much as I hate an investment surprise, it would have seemed a better plan. Thus, I am not so sure that all is well. Maybe this quarter is locked, but the next few might have trouble ahead. Have a good one and welcome back. TH