I really expect that INSW will open north of 20
in the morning...I am LONG so I have a vested
interest...GSCO did not support the price whatsoever today...They
were sellers but with the market conditions today that
was a schrewd move...The main seller was Speer,Leeds
(SLKC) they are renowned shorters...By driving the price
down and using the (SLKC) short momentum we had a
precipitous drop...Now GSCO can raise the bid premarket and
shoot the springloaded stock to the moon...Don't
despair tomorrow is another day!
revenue of $4m is about right. They boast it to
$15m. If we agree that insw inflate the hit volume
about 3 times, it is about $5m ($15m / 3 = $5m). Yes
$5m is not exactly $4m but this give us more
confirmation about the HYPE about hit volume is about/more
than 3 times.
======== msg # 74 from
In 1998 Insweb had revenues of $4 m and
racked up in excess of $50 million in debt.
market cap is more than many established insurers.
Insweb gets most of their fees
from people clicking
on a button that brings them to a State Farm agent.
of people buying this stock have
never even logged on to INSWEB let alone try to get
quote. This On-line surge of offerings that have
no substance will not last because
be on-line including the big-boys - Marsh, Aon etc.
Insweb will not be able
to buy anyone because no-one
will want to paid in Insweb stock.
Big volume today for NUTK. Major news is coming
soon. In the upcoming weeks, NUTK will be opening an
Internet Mall. I see NUTK reaching $1 in the short-term
and $5 by year's end.
You can't find a better
opportunity than this. NUTK is growing into a giant empire. I
am buying all of the shares I can get at these cheap
prices. We are ready to make a major run in the days to
Be sure that you take the time to learn about NUTK
and do research. I guarantee that it will be worth
it 3 times but failed to get any type of quotes
I still have my profile saved in their
site. I even emailed
their customer service telling
them about the problem,
and they said sorry it
happened. It's been 2 1/2 months now,
and I'm still
waiting. You can get a quote faster by phone.
INSWEB to make money, they have to write/issue
first. How do they plan to do that, if they can't even
give quotes? If you don't believe me, try it out
I'm not long or short on INSWEB, just letting
know of my experience with INSWEB. Please no
Good economic news and 3 initiated coverage from
a very good IPO underwriter, Goldman Sach, DLJ, and
Banc Robertson. Thanks to TodaysTally for the
informative and detailed analysis of INSW. I too believe that
this stock is undervalued. The potential for this
stock outweight it's risk. It's is the first one of its
kind on the internet, and I believe being the first in
the internet market is crucial. Look at AMZN, EBAY,
PCLN, and HLTH. Success will bring others, but the
leader will always stay on top. As for today's selloff,
it's normal. Many people buy a stock before the quite
period and selloff when initiated coverage begins. It's
the "buy on rumors, sell on news" mentality. They
will be done with selling and move on. If the market
remain favorable the next couple of days, INSW will
bounce back and continue to head upward. Price targer of
$30-$35 within the next couple of weeks is quite possible
depending on the market overall
INSW is attracting the consumers for the
insurance company, pre-qualifying them and providing
quotes. The individual is typing in his or her own data.
This is the key, as the INSW solution is most
attractive from the standpoint that it is actually an
outsourced marketing, administrative and eventually
processing solution for the insurance companies.
Today it costs the average insurance company $600 to
write a $1,200 auto policy and it takes one million
direct solicitation pieces to attract 4,500 new
This is very expensive and it does not
maximize the value of the insurance company's expertise.
By utilizing INSW to attract and pre-qualify the new
policyholders it can bring the costs of customer acquisition
down by 50%. This is the hook.
gets paid by the insurance companies to deliver the
customers to the insurance company and INSW is paid
regardless whether the insurance company writes the policy
As the model progresses INSW
believes it will evolve to the point where it closes the
policy online for the insurance company.
will allow INSW to capture a considerable stream of
renewal income and allow the insurance companies to
become virtual underwriting entities. Further, it
intends to offer claims processing which would be a huge
boon to its insurance company clients.
company is initially concentrating on personal lines and
intends to broaden its offering to commercial lines over
the next several years.
So where is the
hidden value you ask? INSW has a huge advantage in the
fact that by the nature of the industry it has a first
mover advantage (in most cases this is not an
advantage) by the fact that any potential competitor will
take two to three years to ramp to the level that INSW
is at today.
Each state has its own
insurance regulatory agency and to offer insurance in the
US it must be approved on a state by state basis,
which as you can imagine is an arduous process.
Further, INSW has married its proprietary front technology
with the back end systems of all the major US
insurance companies. This in itself would take several
years to replicate by the most well funded and focused
Lastly, this management team is the
deepest I have seen to date from any IPO, not just in the
Internet sector. The top six executives have an average 25
years of experience in the industry, the senior VPs 17
years and the VP level executives 7 years, which
provides considerable credibility to their vision and
ability to execute on the stated model.
purchased these shares for my clients around the $30 level
and at the current $27.875 price they represent great
I doubt that they will remain at these
levels for long, especially once the Wall Street
analysts recommend the stock in the near future.
Unlike many Internet stocks, INSW has a compelling
business model, projected attractive operating margins of
15%-20% and it has created this opportunity in a sector
enjoying monumental barriers to entry.
Internet stocks offer above average risk, however INSW I
would argue provides the just about the lowest long
term risk in the sector while potentially offering
some of the most attractive capital appreciation
(Part 2, next post) especially important, brings
great value to insurance companies.
Value Stocks: The Ultimate In Portfolio Insurance
July 29, 1999 7:31 AM EDT
By David H.M. Baker
I rarely write about IPOs in
this column as many of these new issues have little in
the way of hidden value.
However, there is
always an exception to the rule and one company that I
had the opportunity to meet with last week was so
compelling I wanted to share it with all you.
company is Insweb (quote, chart, profile) which went
public last Friday at $17 and went to $44 and closed
yesterday at $27.875.
I see Internet issues every
day and have had the chance to meet with many of the
managements of these hot new issues. I must say that INSW
represents what I believe the most singularly impressive
business model I have seen to date in the Internet space.
INSW is a product of more than four years of work and
of tens of millions of venture capital dollars from
some of the most reputable VC firms in the industry.
INSW is a vertical insurance portal, which offers its
users the ability to input their profile, personal,
property data and receive comparative pricing for auto,
health, general, life and property insurance.
Historically, this has never been possible and it is important
to point out that these are actual prices are not
just quotes. This is free to the consumer.
was initially intrigued by the stock because it was
offering a valuable service to the consumer that
heretofore has never been available. In fact in studies INSW
found that the difference in the pricing of auto
policies for a customer with the same profile could vary
as much as 100%.
This company is harnessing
the power of the Internet by making the information
available to the consumer allowing them to make an informed
choice, but as I discovered this was not the most
powerful part of their model. In fact, it would prove to
be just the icing on the cake.