Longs, let's face it. The last 6 months have been extremely frustrating. It is not fun watching your beloved stock drop from $58 to $4. However, let's look at were we are:
88% of US wireless carriers use INSP's platform. The introduction of Locus Dialogues speach recognition software will definately greatly increase wireless web usage. Who wants to type messages using a phone keypad, no one. It's a pain in the butt. However, voice recognition will change all that.
INSP has alliance with Lucent & Nortel who are promoting INSP's platform. Since CSCO is in bed with OPWV, NT & LU have major incentive to push INSP before CSCO gains market share. During the CC, Jain mentioned that LU is in trials with on carrier and NT had several carriers on trial. Since INSP already has 88% domestic penetration, these carriers are probally Asian or European carriers. These markets have strong wireless web usage.
INSP's wireless revenue was $18 million and forecasted to double this year. Since INSP has been a publically traded company, it has always met or exceeded expectations. Wireless revenue is just starting to rev-up and these forecasted numbers are conservative.
Over 2 million merchants signed up. Merchant revenue expected to grow 10-15% per year. Through the wireless web, you will soon be able to immediatley run a price comparison by UPC code and pay for the item using the phone. The promotion angle of the merchant network is also attractive
The crown jewel of GNET, which INSP just stole. INSP was purchased with 100% stock no cash. Based on current price of INSP, you are getting the GNET broadband technology for free.
Interactive broadband TV is coming big time. MSFT, OPTV, & LBRT are the major players in this space. OPTV who is the leader just announced very strong earnings. All three have signed deals with INSP.
Glorified retail. Enough said get rid of it.
INSP is currently majorly out of favor and misunderstood. After a merger it is typical to have management changes, layoffs, and shed off non-strategic assets. INSP is currently doing that with GNET. All INSP wanted in the deal was the payment processing, broadband technologies and $400 million in cash. In fact, based on the current price for INSP, Jain can buy back all of the GNET shares with this cash. I don't know if Jain planned it that way, but it was a great move. Short term pain for Long Term gain.
From out of the ashes, the INSP Phoenix will rise as a lean, high growth, wireless broadband infrastructure power house with incredible alliance and partners. At $4 dollars a share, I'll take my chances with INSP. I am doubling down tomorrow. I think the odds of INSP being above $8 dollars a share in two years is far greater then the odds of INSP going to zero.
Long & Strong INSP