IIP

[David Randolph]

IIP's profile: « Internap is a market leader of intelligent route control solutions that bring reliability, performance and security to the Internet. The company's patented and patent-pending technologies address the inherent weaknesses of the Internet, enabling enterprises to take full advantage of the benefits of deploying business-critical applications such as e-commerce, Voice-over-IP (VoIP), video-conferencing and streaming audio/video across the Internet. Through a portfolio of high-performance IP and WAN optimization solutions, customers can bypass congestion points, overcome routing inefficiencies and optimize performance of their applications. Internap solutions are backed by an industry-leading performance guarantee that covers the Internet as opposed to just one network. These offerings include: network- and premise-based route optimization solutions, colocation, VPN, content distribution and managed security services.

Internap currently serves more than 2,000 customers, including Fortune 1000 and mid-tier enterprises in the financial services, government, travel/hospitality, manufacturing, media/entertainment, technology and retail industries. The company provides services throughout North America, Europe, Asia and Australia. For more information, please visit the company website at www.internap.com.»

What attracted me to this company was, of course, the chart, but also, take a look at this historic revenue graph:



Steady growth. Revenues in 2005 were $153.7M, ahead of analysts estimates. The Price to Sales Ratio is 1.47, and the industry's average P/S ratio is 2.5.

«"This was a record quarter for Internap in many ways," said James DeBlasio, chief executive officer, Internap. "We reported record quarterly revenue and EBITDA as the company benefited from the continued migration of business-critical applications across IP Networks. These results demonstrate the value of Internap technology among new and existing customers who trust us to deliver the highest level of reliability and performance. We also significantly improved our net loss for the period and, with our renewed strategic focus, are poised for profitable growth in 2006."»

I'll buy IIP around today's open for the Stocks on Fire Portfolio.

[poorman1]

Great eye David.  I really like how IIP consolidated at the higher trading level on Thursday.  In at $.68.   

[willey]

Hi folks,

Great pick David!  The telecom infrastructure stuff should be a great sector for awhile...

I added shares today & bought LVLT on its chart (inverse head & shoulders imminent breakout)

good trading to all

willey

[TD]

GLAD TO YOU JOIN THE PARTY... BUT SORRY TO SAY I CAME TO PARTY WAY TOO EARLY.. AVE $1.15/ 4500 SHRS FROM $1.85 DOWN TO .38.

I THINK THEIR TIME HAS COME AND SHOULD DO VERY WELL OVER NEXT COUPLE OF YEARS. LOOKING FORWARD TO UP DATES ON THIS ONE....LUCK TO ALL AND THANKS FOR ALL THE GREAT POST...TD

[shawFund]

David's portfolio looks much more beautiful now.

What is hot:

1. Right now tele-communication stocks are hot - a sign the next generation network is underway. China is going to 3G!!! The license will be given within months after more than one year intensive testing for different standards.

2. Copper, metal stocks are hot: demand from China supposed to be high as China continues building its infrastructure (increasing its electricity power capacity, it needs copper to transmit the electricity to meet increasing demand);

3. Some bio-related stocks are hot though valuation is difficult;

[la-onda]

company profile:
http://www.internap.com/investor/documents/Corp%20Profile%20FINAL%201105.pdf.pdf

Needham Growth Conference 20 slides presentation (Jan 06):
http://www.internap.com/investor/presentations/IR%20Presentation%200106%20no%20conf.pdf.pdf

joined the team @ 0.68 $ 

cheers
Oliver

[David Randolph]

GLAD TO YOU JOIN THE PARTY... BUT SORRY TO SAY I CAME TO PARTY WAY TOO EARLY.. AVE $1.15/ 4500 SHRS FROM $1.85 DOWN TO .38.

I THINK THEIR TIME HAS COME AND SHOULD DO VERY WELL OVER NEXT COUPLE OF YEARS. LOOKING FORWARD TO UP DATES ON THIS ONE....LUCK TO ALL AND THANKS FOR ALL THE GREAT POST...TD

Hello TD 

Don't worry about past mistakes, just learn your lesson: Never, never, average down.

David's portfolio looks much more beautiful now.

What is hot:

1. Right now tele-communication stocks are hot - a sign the next generation network is underway. China is going to 3G!!! The license will be given within months after more than one year intensive testing for different standards.

2. Copper, metal stocks are hot: demand from China supposed to be high as China continues building its infrastructure (increasing its electricity power capacity, it needs copper to transmit the electricity to meet increasing demand);

3. Some bio-related stocks are hot though valuation is difficult;

I agree with your analysis shawFund 

Over the latest earnings presentation:

«We also significantly improved our net loss for the period and, with our renewed strategic focus, are poised for profitable growth in 2006."»

Yet, analysts quoted on Yahoo still expect the company to lose money in 2006 (all estimates there are out of context now, since the company beat analyst's expectations over the latest quarter).

Thanks for those interesting links la-onda 

IIP may pullback a bit here, I don't know, but there's no doubt technicals and fundamentals are working in tandem to take this stock to the upside.

[la-onda]

quotation from 10 K Sec Filling:

Highlights and Outlook

· Due to the nature of the services we provide, we generally price our Internet connectivity services at a premium to the services offered by conventional Internet connectivity service providers. We believe customers with business-critical Internet applications will continue to demand the highest quality of service as their Internet connectivity needs grow and become even more complex and, as such, will continue to pay a premium for our high performance managed Internet connectivity services.

· Our success in executing our premium pricing strategy depends, to a significant degree, on our ability to differentiate our connectivity solutions from lower cost alternatives. The key measures of our success in achieving this differentiation are revenue and customer growth. During 2005, we added more than 150 net new customers, bringing our total to approximately 2,100 enterprise customers as of December 31, 2005. Revenue for the year ended December 31, 2005 increased 6% to $153.7 million, compared to revenue of $144.5 million for the year ended December 31, 2004.

· Solidified management team is focused on achieving profitability and revenue by leveraging operating efficiencies. In November 2005, James P. DeBlasio, a 20-year technology veteran and former Lucent executive, was appointed CEO. Through a renewed emphasis on aggressive cost containment our management team will focus on reducing net losses and driving gross profit to improve shareholder value.

· We intend to increase revenue by leveraging the capabilities of our existing network access points. In our existing markets, we realize incremental margins as new customers are added. Additional volume in an existing market allows improved utilization of existing facilities and an improved ability to cost-effectively predict and acquire additional network capacity. Conversely, decreases in the number of customers in an established market lead to decreased facility utilization and increase the possibility that direct network resources are not cost-efficiently employed. These factors have a direct bearing on our financial position and results of operations.

· We also intend to increase revenue by expanding our geographic coverage in key markets in the United States and abroad. As we enter new geographic markets, operatin results will be affected by increased expense for hiring, training and managing new employees, acquiring and implementing new systems and expense for new facilities. Our ability to generate increased revenue depends on the success of our cost control measures as we expand our geographic coverage.

· We believe that our data center services will continue to be drivers of revenue in 2006. During 2005, we focused on selling, investing in and managing data center services. In order to meet the current and future anticipated demand for our data center services, we invested more than $10 million in 2005 to upgrade and expand our existing facilities. Of the 85,064 total square feet of data center space directly operated by Internap, approximately 71% was utilized as of December 31, 2005. We have 38,894 total square feet of data center space operated under agreements with third parties of which approximately 87% was utilized as of December 31, 2005. During the year, we also focused on bundling our IP and data center services. Our approach to expanding data center capabilities is needs driven, as it serves to enhance our customers access to Internaps core IP services. We believe this bundling brings great value to our customers, as evidenced by the fact that approximately 95% of our data center customers also purchase IP services.

· We sell approximately two-thirds of new monthly recurring revenue to new customers. Selling new monthly recurring revenue to new customers allows us to expand our customer base as well as guard against customer loss.

· While we have limited our execution of traditional advertising over the past year, we are focused on increasing brand awareness through appropriate marketing vehicles. We will continue to develop integrated marketing campaigns that identify qualified leads, generate interest and promote business benefits among key audiences. We will also conduct public relations efforts focused on securing third party recognition of our products and services from the media and industry analysts. Our marketing organization is also responsible for creating our product strategy based upon primary and secondary market research and the advancement of new technologies.

http://biz.yahoo.com/e/060310/iip10-k.html

[eliteG]

IIP is looking fantastic!

A rising price with rising volume.. thats the basic concept of a bullish chart and IIP has it big-time  .  I'm excited to see how this AMEX penny develops.

Here is a link to recent news released after the bell today:

Internap Makes the Leap to 10 Gigabit Route Control with New Flow Control Platform Solution
Tuesday March 14, 5:02 pm ET
Technology Supports Growing Bandwidth and QoS Needs of e-Commerce
http://biz.yahoo.com/bw/060314/20060314006178.html?.v=1

Lets see how the market reacts 

[mexirafa]

Hello everyone,

The chart is very exciting. Lots of volume, and the price keeps fighting for the upside. Is anyone concern of the MACD at this point? It seems  ::)to be way overbought.  If a break for the upside, is 1.10 a realistic short term target?

thanx,
Rafael

[Loffigus]

Man, I keep on delaying buying this, and now I wish I hadn't
I don't like buying peaks... I always buy the second the run is over and then sit on a loss for 3 weeks, then get discouraged, then sell, only to watch the next run go without me.

[eliteG]

update IIP:

Awesome move Friday  with volume!  IIP looks like it does not want to be a penny much longer.  Now is a good time to put in a stop to protect ourselves just in-case the tables turn. 

I believe the Financials released on Friday played a part.  On quick scan it seems that IIP is generating a lot more cash from operations and so is poised to swing to profit next quarter 
http://finance.yahoo.com/q/is?s=IIP

We will sell IIP if it closes below 0.69.

[tokyopua]

This stock had another great day, yet there were no posts yet!

Is it just me or does this look like the most bullish stock in the 3SOF portfolio right now?  Volume is spiking, great chart, great technology, etc.  OK, maybe NVAX will be the best (I was silly to get out Thursday and missed the big run up today), I dont know, but I really like the IIP story and technology.  I was lucky to get in a few cents lower too at .63 on 3/7 so maybe I am loving it more for that too!  Of course, I was in DIET so I am still not that lucky until IIP hits $1.1 or so...

Here is a white paper I found on the Yahoo MB, interesting read if you are interested in the internet, and also good info about what IIP technology can do.

http://www.internap.com/learning/whitepapers/white_paper-Performance_Enhancing.pdf.pdf

[eliteG]

Exactly toky  This is an insanely bullish chart!  I was considering placing a target sell of 1.20.. but I looked at the long-term chart and it seems that would be cutting ourselves short.    Thx for the link 

----------------------------------------

update IIP:

A powerful Monday move to start the week!.. and with over 15Million traded!  I think its a good idea to maintain our previous stop at this time, I would like to give room for IIP to develop(and show me its support) although I am interested to see if it can hold 0.85.

[tokyopua]

This stock had another great day, yet there were no posts yet!

Is it just me or does this look like the most bullish stock in the 3SOF portfolio right now?  Volume is spiking, great chart, great technology, etc.  OK, maybe NVAX will be the best (I was silly to get out Thursday and missed the big run up today),

Well, I am not feeling so silly for selling NVAX after all, I was actually considering getting back in today until I saw the news... I have been through that twice with NVAX before, sorry to see that happen yet again.

Two of my stocks under one dollar are the only ones keeping my portfolio green today, CHID and IIP are doing great.  Of course, technically at the moment IIP is no longer under $1.00 , it finally broke the psychological barrier and has been staying there fairly stead for the last 30 minutes.

Loving IIP, great pick!  Agreed EliteG that long term $1.2 might be too moderate, assuming no secondary offerings, etc.