Standard ‘trading disclaimer’: I do not guarantee the accuracy of any informations presented in this post. I can get it wrong and I sometimes do. However, those informations are the foundation of why I’ve bought this company stock. I also need to disclose the fact that I’m trading, not investing. My exit strategy is limited in time – I probably won’t have any more of this stock in 6 months. I do not post this article to suggest trading. It is meant as a presentation of a company that, in my book, should get more recognition.
This is the first post of the new ‘stockmarket’ tag – more to come. My portfolio performance is available here: portfolio performance.
iWeb Group Inc.
as per their website:
iWeb has been providing reliable and scalable Internet hosting infrastructure solutions with its shared web hosting, dedicated servers, managed hosting and colocation services for over a decade. [...] Today iWeb is one of the largest web hosts and Internet hosting infrastructures provider in Canada. iWeb’s operations centres shelter a total of more than 59 000 square feet of latest generation data center and office floor space in Montreal and offers a wide variety of first class web hosting and server management services.
[ more information available here ]
FOR iWeb:
- 2008 ; Goldman Sachs 20M$ investment. Part of the deal involve issuing stock @ 1.30$. This is 10% of current market capitalization (at 0.80$CAD)
- Reliable board of directors. Very low rate of change in the management structure.
- They can be trusted. They not only survived all the previous dot.com crash but they thrive in troubled time. Enterprise look to reduce/fix infrastructure cost and iWeb has proved to be a reliable player. They are one of the most reliable hosting company sites in april 2009: netcraft report. They were also recognized, in 2007, for their free speech respect.
- They are involved in the local communities and present in new media. They have a twitter account, they maintain a corporate blog and most of the director also have one.
Mitigating factors, iWeb:
- The main part of their income (and their financing) is at the international level (in $USD), which make them very dependent on the weakness/strength of the Canadian dollar.
- Very, very, low trading volume. Last transaction price @ 0.80$CAD, current buying price is at 0.85$CAD and selling at 1.10$CAD (which is the 52 weeks high). Be careful is you send a market order.
Note: they are releasing their Q2 Earning report tomorrow, before the market opening.
