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Sally Jones
Sally Jones
Articles (580) 

Large Shareholder Mario Gabelli - No Nap for INAP

March 27, 2013 | About:

On March 25, 2013, GAMCO Investors’ Chairman and Chief Executive Officer Mario Gabelli reduced his Internap Network Services (NASDAQ:INAP) position by 0.02%, leaving him with 6,062,667 shares. INAP current share price is $9.39 with a 0% change. Since 1996 Internap Network Services (NASDAQ:INAP) has provided high-performance IT technologies and solutions that help businesses transform their IT infrastructure into a competitive advantage. The company sells its managed hosting services at 38 data centers across North America, Europe and the Asia-Pacific region. On March 25, 2013, Benchmark Co. raised its price target on Internap from $8.50 to $12 based on the belief that INAP could benefit from positive industry trends and a shift towards managed hosting and cloud services.

According to GuruFocus, INAP stock price is up 32% year to date. The company has a market cap of $502.5 million; its P/E ratio is 3130.2 with a P/S ratio of 1.8.

Until his latest adjustment, Gabelli’s holding history shows measured increases of INAP since second quarter of 2011.

GuruFocus performed a checkup on the company’s financials and performance data and found four warning signs: Internap Network has a low Piotroski F-Score of 2, which usually implies poor business operation. Also, the company’s asset growth is faster than its revenue growth. Additionally, the INAP price ($9.39) is close to a five-year high of $9.17; the stock’s P/S ratio (1.7013) is close to a five-year high of 1.7013.

Gabelli’s company, GAMCO Investors, lists 792 stocks in a portfolio valued at $13.6 billion, with a quarter-over-quarter turnover at 6 percent. At the end of fourth quarter 2012, GAMCO Investors Inc. (GBL) announced fourth quarter earnings of $17.6 million, and assets under management at $36.4 billion, a record at year-end. For revenue, GAMCO Investors ranks higher than 92% of the 13 companies in the industry. For earnings yield, GAMCO Investors ranks higher than 54% of the 13 companies in the industry.

A legendary investor from the Bronx, Guru Gabelli is also known for his television commentary on CNN and CNBC. His “private market value with a catalyst” methodology is now an analytical standard in the value investing community.

Here’s a look at Mario Gabelli’s recent top buys, top sales and top holdings:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.3/5 (6 votes)


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GuruFocus has detected 5 Warning Signs with Internap Corp $INAP.
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