- Internap Network Services (INAP +8.7%) shares climb after the name is mentioned favorably at a Barron's roundtable over the weekend.
- O.S.S. Capital's Oscar Schafer thinks that INAP's "legacy bandwidth-resale business" masks the growth rate of its data-center business (13% annually since 2010, with operating margins expanding 13% over the period).
- Schafer thinks margins have further room to expand with new company-owned data centers currently at <60% utilization.
- With the data-center ops now representing over 50% of revenue, Internap could be the target of a telco or IT services company. Historically, transactions have occurred at 10x EBITDA, while Schafer estimates Internap trades at <7x 2015 EBITDA.
- Gamco Investors' Mario Gabelli chimes in that CEO Eric Cooney, "is terrific" and that his fund remains the company's largest shareholder.
From other sites
at Investor's Business Daily (Jan 5, 2015)
at MarketWatch.com (Jan 28, 2011)
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