Google Video

I read an interesting post about Google Video and its impact on data centers over at the Internet stock blog. I don´t own any of the stocks mentioned there, but the article gives a decent summary of why you need to invest in Internet and Broadband infrastructure plays.

Here is brief excerpt:

"Data center owners should be giddy about the launch of Google Video and imminent arrival of similar services providing online video. It’s clear that in coming years, television and movie content will become widely available for download across IP networks. An enormous volume of digital files will need to be stored in data centers for delivery via the Internet."
Get the full article at:
http://internetstockblog.com/article/5570

As mentioned in the past on this board, the cheapest Internet infrastructure play I could find was IIP. Interestingly, the article above highlights AKAM, a major favorite of Wall Street. IIP is a major reseller for AKAM. So if you like AKAM at 10X revenue, you´ve got to love IIP at less than 1X revenue (despite the recent run up in IIP´s share price, it´s still cheap). I´m researching other companies for the boom in the Internet and Broadband infrastructure industry and will post one or two, as soon as I can find a good investment candidate. For now, I´m sticking with IIP, RBAK, and INLD (which is not really an infrastructure play). 

Comments

[Kevin]

I think the valuation for IIP is a good topic. I saw the logic CC used to come up with .65 as a target. That is a market cap at around $200M. I place a value on IIP - with the info we currently know - at $750M. This would move north if we learned more - such as higher rev forecast. I tend to think CC is not taking into consideration a premium for IIP's customer list, patents, hot market sector, etc. Your basis appears to be based on comparisons with others in the industry...but there is nobody with the unique technology IIP uses to compare with (which should be another premium). If stocks were valued JUST on comparisons with their peers we wouldn't have goog at 350 a share for example. I would very much appreciate someone (CC?) putting together a realistic valuation target for IIP...as it increases in price we as investors can use some assistance in understanding what their true value (or range) is. Thanks in advance.

[SA]

Would be great to have a price target on IIP (based on solid overall evaluation).