Tag - INSP

Small-cap stocks pushed higher Wednesday, bolstered by a rally in tech stocks and another soothing pullback in crude oil prices. The Russell 2000 (NYSE:IWM) gained 4.85, or 0.67%, to 725.90, the highest daily close since June 19.

Importantly, small caps finally broke free of the recent trading range. Sustained action above 726 is still needed to validate the upside breakout. Today’s rally also confirmed a breach of trendline resistance from both the June peak and the previous July high, which adds to the chart-related glow.

Crude oil prices slipped to 3-month lows today when the weekly inventory report showed a larger-than-expected build in crude oil stocks. The report reflected an increase in stocks of 1.7 million barrels, well beyond the forecast for a rise of 300,000. Still, gasoline stocks had a surprisingly large drawdown of inventory, which took some of the bearish sting out of the crude data. Overall, the weak tone in crude oil continues to provide a cushion for equity markets, providing some hope that consumers will spend less at the gas pump and more on other endeavors...

InfoSpace, Inc. (Nasdaq:INSP) said late Tuesday that it swung to a profit in the second quarter, besting the consensus on Wall Street by a whopping 900%. Revenues jumped 21% in the quarter, as the firm experienced growth in its owned-and-operated properties. The online search services provider also issued full year guidance inline to above analysts’ mean estimates.

Shares gained 7.5%, or $0.66, to $9.50 in pre-market trading. For detailed price information and recent news stories about InfoSpace, click INSP.

The Russell 2000 (NYSE: IWM) futures are up slightly and the small-cap index will likely open in positive territory.

Today will be a quiet day, with little news on the economic or corporate front. The Mortgage Bankers Association will reveal numbers on mortgage application volume for the week ended Jan. 4, but that measure typically gets little reaction from investors.

Overseas, the United Kingdom’s FTSE 100 index fell 1.4%, while Japan’s Nikkei 225 index climbed 0.5%.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Epicor Software Corp. (EPIC), up 15% on news it forecast fourth-quarter revenue above expectations.
• Triad Guaranty Inc. (TGIC), up 12%.
• Isle of Capri Casinos, Inc. (ISLE), up 12%.

Biggest percentage losers:

• InfoSpace, Inc. (INSP), down 49%.
• Premier Exhibitions, Inc. (PRXI), down 31%.
• Spectrum Control, Inc. (SPEC), down 15% on news that fourth-quarter earnings were below analysts’ expectations.

Idearc Inc. (NYSE: IAR) CEO Kathy Harless said its acquisition of InfoSpace, Inc.’s (Nasdaq: INSP) online directory properties will add profitable revenue, enhance local search offerings and have no impact on the business directory publisher’s dividend program. Harless made the remarks during a midday conference call.

InfoSpace announced before the opening bell that its board of directors approved the sale of its online directory business to Idearc for $225 million in cash. The deal includes Switchboard.com, Local.Infospace.com and FindIt, Infospace’s cell phone search service. The acquisition was funded through cash and Idearc’s existing credit facility, Harless said.

“Acquiring Switchboard.com is absolutely consistent with the strategy we’ve been telling you over the past several months,” Harless said during the call. “To be successful in local Internet search, we must have strength in three distinct components: content, technology and distribution. This deal provides advantages in all of these areas.”

The deal adds profitable revenue, she said, and once the deal closes, Idearc will be able to charge performance-based advertisers higher fees. All of the Texas-based company’s fixed-fee advertisers are expected to be charged the new rates by 2009, she said. YellowPages.com, one of the firm’s significant clients, will be charged the new rates shortly after the deal closes. The acquisition is expected to finalize in 30 to 60 days, according to a press release.

Through the acquisition, Harless said the deal will “significantly enhance” Idearc’s competitive position. The properties acquired through the acquisition had 7.7 million unique visitors during August, Harless said. That compares with Idearc’s 21.3 million unique visitors during the same time period for its Superpages.com network.

“This enhances our position as one of the strongest local search providers in the marketplace,” she said.

Finally, she said the acquisition “fits well within our stated capital allocation program and it will have absolutely no impact on our current dividend program.” Harless said Idearc’s free cash flow will go toward paying stockholder dividend, repaying debt and investing back into the company.

InfoSpace, Inc. (Nasdaq: INSP) shares are soaring in pre-market trading after the Internet search operator announced that its board of directors approved the sale of its online directory business to Idearc Inc. (NYSE: IAR) for $225 million in cash.

“The sale of our directory business is part of the board of directors’ ongoing review of our company and the opportunities available to enhance value for our shareholders,” CEO Jim Voelker said in a statement. “In addition to unlocking the value of our director business that was not reflected in the company’s market valuation, this transaction is extremely tax efficient, allowing us to capitalize on our net operating losses to significantly maximize the cash proceeds from the sale.” 

Texas-based Idearc publishes yellow pages directories in 35 states. The acquisition gives Idearc control of Switchboard.com and other online directory assets. Idearc said the deal is expected to close within 60 days.

Upon completion of the transaction, InfoSpace said it expects to return the net proceeds from the sale to shareholders as a special cash distribution.

In pre-market trading, InfoSpace shares are hitting a year high, up 27%, or $3.64, at $16.89. Over the last 52 weeks, shares of the small cap have ranged from $12.56 to $27.76.