Internap Corporation (NASDAQ:INAP) Why it Popped

Internap Corporation (NASDAQ:INAP)

Internap Corporation (NASDAQ:INAP) were up over 150% in early trading on over 10 times their pro-rated average daily volumes. The catalyst was an announcement of a private placement of approximately 23.8 million shares of its common stock at a price of $1.81 per share, for aggregate gross proceeds of approximately $43 million. Internap plans to use the funds, partly, to help pay down its debt.

Peter D. Aquino, President and Chief Executive Officer of Internap Corporation (NASDAQ:INAP) stated “The speed with which our new team is moving to right-size our business and invest in sales and marketing to capture strong market demand for Colocation and Cloud services is impressive.  The next steps in the 2017 transformation of the new INAP is to approach the market as two pure plays, complete our debt refinancing, and begin to consider strategic opportunities to bolster our organic growth.”

Atlanta, GA-based Internap Corporation (NASDAQ:INAP) provides internet infrastructure through both Colocation Business and Enterprise Services, and Cloud, Bare-Metal Servers, and SMB iWeb platforms. INAP’s global high-capacity network connects 15 company-controlled Tier 3-type data centers in major markets in North America, 34 wholesale partnered facilities, and points of presence in 26 central business districts around the world.

Investor confidence was also buoyed by guidance provided today. Internap Corporation (NASDAQ:INAP) affirmed guidance for 2016 – revenue of $297 million to $300 million, adjusted EBITDA of $81 million to $83 million, and capital expenditures of $47 million to $50 million. Guidance for 2017 was revenue of $275 million to $285 million, adjusted EBITDA of $84 million to $87 million and capital expenditures of approximately $42 million.

Sales for Internap Corporation (NASDAQ:INAP)trended up from 2011 ($244.6 million) to 2014 ($335 million) but in 2016 the company posted a lower sales figure of $318.3 million. There has been no break in the EPS trend – it has been downward. In 2011 the company posted an EPS loss of $0.03) and in 2015 the loss expanded to $0.93. Six firms follow Internap Corporation (NASDAQ:INAP). Two rate INAP as a “Strong Buy”, one rates the shares a “Buy” and three rate INAP as a “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

2/22/2017
Ticker Symbol INAP
Last Price a/o 11:15 AM EST  $                      2.50
Average Volume                    830,250
Market Cap (mlns)  $                  104.22
Sales (mlns) $302.90
Shares Outstanding (mlns) 57.58
Share Float (mlns) 54.99
Shortable Yes
Optionable Yes
Inside Ownership 4.20%
Short Float 5.91%
Short Interest Ratio 3.91
Quarterly Return 67.59%
YTD Return 17.53%
Year Return -9.50%

TrueCar Inc. (NASDAQ:TRUE) A Bright Future?

TrueCare Inc. (NASDAQ:TRUE)

TrueCar Inc. (NASDA:TRUE) tries to transform the car buying experience for consumers and the way that dealers attract customers and sell cars. The company has established an intelligent, data-driven online platform operating on a common technology infrastructure, powered by proprietary data and analytics. Santa Monia, CA-based TrueCar operates  TrueCar.com website. In addition, they customize and operate a platform for affinity group marketing partners, such as USAA and Consumer Reports, financial institutions, and other large enterprises such as Boeing and Verizon. TrueCar enables users to obtain market-based pricing data on new and used cars, and to connect with our network of 13,000 TrueCar Certified Dealers. Two million users have bought a car through TrueCar certified dealers.

TrueCar’s Affinity Partners include USAA, Sam’s Club, Consumer Reports, AAA, American Express, Geico and Farmers.

History

TrueCar Inc. (NASDA:TRUE) was originally incorporated under the name “Zag.com Inc.”. TrueCare originally operated the business primarily as a provider of “white-labeled” auto-buying programs for affinity groups such as USAA. Within the Zag.com environment, the concepts of price confidence using data and analytics presented in an easy-to-digest form was created and launched in TrueCar.com. The TrueCar concept involved gathering data in order to increase pricing transparency on vehicle prices for consumers in an attempt to enhance Zag.com’s services. Ultimately, the two entities were combined to form TrueCar Inc.’s (NASDA:TRUE).

In 2008 TrueCar Inc. (NASDA:TRUE) raised $2.8 million from Zag’s original investors. It received $8.1 million investments from Capital One and Anthem Venture Partners. TrueCar raised another $35.5 million in 2010. In September 2011, TrueCar raised $200 million from USAA, GRP Partners, Keating Capital, Silicon Valley Bank and Capricorn Investment Group. Truecar raised $30 million from Vulcan Capital in 2013. As of 2013, TrueCare Inc. has raised over $200 million in financing since its founding in 2005.

The Numbers

TrueCar Inc. (NASDA:TRUE) has had increasing sales since 2011 when it posted a fugure of $$76.3 million. In 2015 the figure was $259.8 million. True EPS has been negative since 2011 when the figure was a $0.16 loss. Other EPS losses followed and in 2015 the loss was $0.79 EPS.

Seven firms follow TrueCar Inc. (NASDA:TRUE). Three each rate TRUE shares as a “Strong Buy” and a “Hold” while one rates TRUE shares as a “Buy”. Traders should note the short seller figures below.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/17/2017
Ticker Symbol TRUE
Last Price a/o 9:44 AM EST  $                    14.40
Average Volume                    639,300
Market Cap (mlns)  $              1,110.00
Sales (mlns) $267.00
Shares Outstanding (mlns) 83.78
Share Float (mlns) 63.3
Shortable Yes
Optionable Yes
Inside Ownership 1.70%
Short Float 28.13%
Short Interest Ratio 27.84
Quarterly Return 9.50%
YTD Return 6.00%
Year Return 129.64%

Lantronix Inc. (Nasdaq: LTRX) Up on Heavy Volumes

Lantronix, Inc. – Nasdaq: LTRX

Shares of Irvine, CA-based Lantronix Inc. are up over 20% on heavy volume. LTRX, traded on the Nasdaq, ended Thursday at $1.62 but gapped up on the open to $1.88 and reached a high of $2.19. By mid-day LTRX volumes were over thirteen times their daily average.

Lantronix, Inc. is a global provider of secure data access and management solutions for Internet of Things and information technology assets. Lantronix strives to be the leading supplier of Internet of Things gateways that enable companies to dramatically simplify the creation, deployment, and management of digital-based projects while providing secure access to data for applications and people.

Net revenue for the second quarter of fiscal 2017 increased 18% from the same period in fiscal 2016 and 3% from the first quarter of fiscal 2017. Sales of the company’s Internet of Things products grew by 17% during the second quarter of fiscal 2017 compared with the same period in fiscal 2016.

One firm follows Lantronix and they rate LTRX as a “Strong Buy” with a price target of $2.50. LTRX EPS was negative for the past five years and in 2016 posted a loss of $0.13. Reported sales have declined since their 2013 high of $46.7 million to $40.6 million in 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/27/2017
Ticker Symbol LTRX
Last Price a/o 1:08 PM EST  $                      1.96
Average Volume 53,120
Market Cap $28.5 million
Sales $41 million
Shares Outstanding 17.59 million
Share Float 10.55 million
Shortable Yes
Optionable No
Inside Ownership 3.00%
Short Float 0.41%
Short Interest Ratio 0.82
Quarterly Return 10.20%
YTD Return -4.71%
Year Return 40.87%

New Relic Inc. (Nasdaq: NEWR) Benefits from CSCO Acquisition of Competitor

New Relic, Inc. – Nasdaq: NEWR

New Relic Shares, traded on the Nasdaq under ticker NEWR, ended Wednesday’s session at $33.30. However, news that Cisco Systems (Nasdaq: CSCO) acquired App Dynamics, a competitor of New Relic, just before it was set to go public set off a firestorm of trading. Shares opened at $40.00 – a 20%+ rise. As the day continued, volumes continued to skyrocket and NEWR settled in at $36.85.

New Relic, Inc., a software-as-a-service company, provides software analytics products worldwide. The company’s cloud-based platform and suite of products enables organizations to collect, store, and analyze software data in real time.

 New Relic’s reported sales have increased each year and were $181.3 million in 2016. Shareholders of NEWR have not been as fortunate with EPS. In 2012 EPS for NEWR was -$0.16 and in 2016 EPS for NEWR was still negative at -$1.39.

 Eight firms follow New Relic Inc. Six rate NEWR as a “Strong Buy”, one rates the shares as a “Buy”, and one rates it as a “Hold”. Their consensus price target is $39. 

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 

Gogo Inc. (Nasdaq: GOGO) Shares Rise on Coverage

Gogo Inc. – Nasdaq: GOGO

Shares of Gogo Inc. are rising after Guggenheim initiated coverage at a “Buy” rating. Shares, listed on the Nasdaq under ticker GOGO, ended yesterday at $8.71, gapped up to open at $9.07, and reached a high of $9.61.

Gogo Inc. delivers internet connectivity and entertainment to aircraft worldwide. Gogo provides services on approximately 9,600 aircraft, which represents more than 20% of the world’s total commercial and business jet aircraft. They are positioned to support global operational execution, as well as a research and development program that enables them to develop technologies for the global aviation industry.

Gogo’s reported sales have increased every year and posted $500.9 million in 2015. GOGO EPS has been negative every year for the past five years and in 2015 GOGO EPS was a loss of $1.35. Five firms follow Gogo Inc. Two rate GOGO shares as a “Strong Buy”, and one each rate the shares as a “Buy”, “Hold”, and “Sell”. Their consensus price target for GOGO is $13.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 


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