Small Cap Stocks

Well, I´m not an insider at Interland (INLD), but I predicted a little while ago that Interland (INLD) would change its name to Web.com, following the close of the Web.com acquistion. Today Interland (INLD) confirmed that it will change its corporate name in 2006 to Web.com.

Yesterday, Interland (INLD) announced two new management appointments. The management additions add to and confirm the bullish case for Interland´s (INLD) stock.

Interesting news out of Interland this morning. The company is buying Web.com for $4.4 million. I´m "lukewarm" about this acquisition, as explained in more detail below. However, I´m still very bullish on Interland and this acquisition just confirms my thesis that Interland is at the start of a new, aggressive growth period. As explained in my initial write up of Interland, the company is sitting on a mountain of cash, which if invested wisely by the new management can provide a huge return for shareholders.  Now on to a quick analysis of the Web.com acquisition and this use of Interland´s cash.

Interland reported earnings today. Here are some of my takes from the report and the conference call:

Note: Interland has changed it’s name to Web.com (WWWW)
Investment Summary: I believe that Interland (INLD) represents an excellent investment opportunity at current prices. I would buy the stock up to $3.25 and hold for as long as the business is being run prudently.

March 2006 Update: Please note that Interland (INLD) has changed its name to Web.com and now trades under the ticker symbol: WWWW.