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Microcap & Penny Stocks : INSP Investors Research -- Ignore unavailable to you. Want to Upgrade?

To: michaele23 who wrote (472)	2/6/2002 5:30:46 AM
From: tahoe_bound	Read Replies (1) \| Respond to of 787

Pro-forma accounting gimmickry Another way of saying, we can't produce real numbers so here is a smoke and mirrors formula that not even 2 CPA's can agree on. With the wrong way crowd of investors large and small bemoaning the sinking of all the USS Nazztanic rafts filled with leaks, you would think there would be even more personal accountability demanded and lots less complacency. Guess it is gonna take a much larger clobbering and far longer than most expect to fully wring the excesses, like the "unsinkable" Nazztanic bubbling down to 500-800. Gee, thanks alot Abby Jo, and Maria on Bubblevision, I keep on trustin' it will float back 'cause you tell me to! Lol. Anyways Here is an old post of mine from last year, I rarely check here any more. INSP is just another pro-forma #*&$)#, and the plummeting stock price accurately reflects it. Increasingly more conservative investors and large players under scrutiny won't put up with it any more, if it is losing money like a sieve, then it just does not deserve a larger market cap than a homebuilder that has tripled in price and still with a P/E of 8 making far more in real earnings for example. Sweet and simple, no games or gimmicks. Welcome to the new decade, a complete mirror of the excesses of the 90s. (By the way, gold stocks are also rocking and rolling, will be the internet stocks of the 2000's FWIW, all sorts of M&A there, setting off a bull market) SEC threatens "pro-forma" cos. accounting quote.bloomberg.com. topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position 1_topfin&middle=ad_frame2_topfin&s=APA0.LBXuU0VDIFRo "Washington, Dec. 4 (Bloomberg) -- The Securities and Exchange Commission threatened to sue companies that mislead investors with pro forma accounting, which typically makes companies' earnings look better by excluding some costs..." "...``I don't think the SEC had a choice in trying to put some teeth in getting companies to observe best accounting practices,'' said Dean Krogman of the Financial Executives Institute, a group of corporate fiscal officers. ``They've been getting pressure from investors.''" "...About 200 to 300 companies, out of about 6,000 companies reviewed, use pro forma earnings, Thomson Financial First Call analyst Ken Perkins said earlier this year. " I'd bet most of the 200 - 300 companies are techs. Next the SEC should pursue the issue about QQQ trading & propping.

To: michaele23 who wrote (472)	2/7/2002 12:48:04 AM
From: howsmydrivingal	Read Replies (1) \| Respond to of 787

In looking at the older 10Q's and other financial reports. INSP has learned the hard way about HR matters. Many one time payments to ex employees in lawsuits, and INSP is being sued by Milber Wiess and many others. Jain has since cleaned up his act. The company has given pretty clear metrics to judge the company by. They have removed all but recurring guaranteed revenue from all future projects, got rid of barter income taken write downs with investments, and all around are now towing the line. Jain is selling less than 1% of his holdings and has scheduled to do it in the only fashion acceptable for insiders. Announce it, schedule it, and then sell it in equal amounts over equal intervals of time. I have announced that I hold long term position in INSP and sold a very large trading position before the end of last year. INSP is a long term play. They have cut costs to hang on and survive until the wireless web can take off. They are pricing themselves right to acquire market share in this down economy. They have a clear winner in Authorize.net and the other metrics are growing (not the wireline search engines though). I don't know if I put any more money into this stock at the moment. I don't think it should have a market capitalization of 3.4 x revenues. Not yet. After the last cc I thought this stock would go back to the 1.70's range and asked opinions about what people thought on Yahoo about the 1.40's. I did not get any responses, thought out or otherwise. This company is very interesting, its CEO is interesting, and many of the holders on these boards are very emotional over this stock. It is hard to get objective digression as people either love it or hate it... The no debt and good books you talk about....I like that too but you cannot get away from REVENUES....REVENUES. INSP guided down from over 214 million to 109 million for 2002 end of last year. They moved that up to 115 million this last quarter. It was shrewd to only project the guaranteed recurring income and hopefully they can move that bar up through out the year. I may jump back in big for a trade if we touch under 1.50's, if we go under 1.40's I will take a piece for sure, and if we go any lower, I'll watch the volume and movement and see if it goes lower then I'll start backing up the truck if all things being equal, there is no explanation for the downward movement. Otherwise, I watched it climb to 2.74 not too long ago and was able to stay away as the real 'turning the corner' for this company is when the economies of scale kick in with their wireless web products and the profit margins start to climb again. Profit margins have slid from high 70% to low 70% and now the latest was about 64%. You will know when INSP is making it is when you see profit margins climb again. Revenues are essential for all companies. Growth companies can be excused revenues only so long. INSP has been excused for a while now. Investors want that carrot. INSP is still a great story with a lot of potential and at lower prices and excellent takeover or stand alone investment play. At these prices, it is a good long term play. I think ultimately INSP wants to be that infrastructure for wireless broadband web. They will use the query searches for income to get them through this period but will not put a huge effort into making that work. It is needed for now, but not for later. The overhead and market renewal type of work is too costly for the INSP business plan. JMHO