Remember
 
 
At SpeculatingStocks You Can Discover Stocks, Post Anonymously, and React to Posts. Login is Optional.
Watch for Reactions to Your Posts or React Below to Other's Posts. Discover Stocks and Market Data.
     
 

September 27, 2005

SpeculatingStocks.com Stock Pick: InsWeb Corporation (INSW)

Stock Price: $4.36


InsWeb Corporation operates an online insurance marketplace that enables consumers to comparison shop online and obtain insurance company-sponsored quotes for a variety of insurance products. Insurance quote offerings include auto, term life, health, homeowners, renters and condominium.

InsWeb Corporation reported second quarter revenues of $6.6 million, up 96% from the same period last year. Transaction fee revenues are growing most rapidly for auto and term life insurance. Their term life revenue model was just switched to a commission-based model instead of lead based and is expected to generate significantly more revenue on a long term basis.

The company did lose $1.1 million last quarter; however, operations can be easily sustained with the $13.4 million in cash on the balance sheet. Marketing cost to the company is $2.66 per customer, while total revenue per customer is $5.00.

As insurance premiums move higher due to catastrophes, consumers will surf to insweb.com to compare and find a better rate.

INSW is a bargain at only a 17.63 million dollar market cap. INSW has more than doubled since early November last year.

 
     
Untitled Document