Hello Friends! As you will note from the previous post, I have just purchased 200 shares of iPass (IPAS) at $16.55 just minutes ago and promised to post a note on the company. So here it is. You take a look at the numbers and the story and see if you agree with me that it looks interesting.
IPAS is having a nice day today, currently as I write trading at $16.47 up $1.22 or 8.00%. The stock is actually trading at its lower end of its trading range for the past 52 weeks which according to Morningstar.com, has been a high of $29.19 and a low of $15.08.
According to money.cnn.com, IPAS "...is a provider of software-enabled enterprise connectivity services for mobile workers." As I understand it, IPAS is involved in the rapidly growing area of WiFi connectivity. (Did I spell that right?)
If we look at the "5-Yr Restated" financials on Morningstar.com, we find that IPAS has been growing rapidly from $3.9 million in revenue in 1998 to $14.3 million in 1999, $35.3 million in 2000, $53.2 million in 2001, and $92.8 million in 2002.
Free cash flow which was a ($29) million in 2000, and ($22) million in 2001, turned positive at $7 million in 2002.
The balance sheet, as presented on Morningstar.com also looks nice with $27.9 million in cash reported, more than enough to pay off both the current liabilities of $24.1 million and the long-term liabilities of only $1.8 million combined. In addition, they have other current assets totalling $25.8 million.
The latest quarterly results were reported on October 16, 2003, as picked up by the NYTimes on the Web, revenue was $35.0 million, an increase of 46% from the 2002 results, operating income was $6.2 million representing a 149% increase over the $2.5 million reported in the same period last year and a 9% increase over the prior quarter for sequential growth. On a per share basis, net income was $.07/share vs $.04/share last year.
Looking at "Key Statistics" on Yahoo.com financial site, we find that the current market cap is $989.71 million, the trailing p/e is at 23.93, however the forward p/e is at 37.20 (?). The PEG ratio is reported at 1.43 with a Price/Sales at 7.32. So except for the current p/e, this doesn't look cheap.
There are 60.46 million shares outstanding, but only 7.00 million of them float. There are only 92,000 shares out short as of 11/10/03, representing 0.369 trading days. No dividend is reported and no stock split since this company came public during the 3rd quarter 2003.
I do like this stock a lot. In fact I bought 200 shares (which are a little underwater already!) earlier today. The stock has a reasonable p/e in the low 20's with explosive growth history and in a spot of the market that should continue to grow, in my humble opinion.
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