Internap Corp (NASDAQ: INAP)
Internap is having an incredibly strong day in the market today. As soon as the trading session opened, the stock was already trading dramatically in the green. While we did see a bit of a correction shortly after the bell, it didn’t last long, and now, the stock is headed back upward. Below, we’ll talk about what we’re seeing from INAP, why, and what we’ll be watching for ahead.
What We’re Seeing From INAP
As mentioned above, Internap is having an overwhelmingly strong day in the market today. At the opening bell, the stock was already trading on impressive gains. While it did correct a bit since then, the stock found support well ahead of the break even point and is currently headed back upward. At the moment (10:08), INAP is trading at $2.69 per share after a gain of $0.88 per share or 48.61% thus far today.
Why The Stock Is Gaining
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on INAP. As soon as we received the notification, the CNA Finance team went to work to see if we could uncover the cause of the movement. In this case, it didn’t take very long. The gains are the result of a fund raising effort that went well.
Internap announced a private placement of about 23.8 million shares early this morning. The shares of common stock sold for a price of $1.81 each, grossing approximately $43 million. The buyers of these shares were a group of investors that includes affiliates of or funds managed by GAMCO Investors as well as accounts advised by Avenir Corporation. In a statement, Peter D. Aquino, President and CEO at INAP had the following to offer…
“The confidence demonstrated by our investors in the future of INAP is extremely motivating to the entire management team as we continue our comprehensive operations improvement initiative… The speed with which our new team is moving to right-size our business and invest in sales and marketing to capture strong market demand for Colocation and Cloud Services is impressive. The next steps in the 2017 transformation of the new INAP is to approach the market as two pure plays, complete our debt refinancing, and begin to consider strategic opportunities to bolster organic growth.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on INAP. In particular, we’ll be watching as the company continues on the restructuring process, toward what we believe will be a far more efficient and profitable endpoint. Nonetheless, we’ll keep a close eye on the progress and continue to bring the updates to you as they break!
Update (11:51): INAP is on a slow, yet steady downward path. At the moment it is trading at $2.28 per share. While that is quite a bit lower than it was at the time of this article’s publication, the gains are still impressive, currently at 25.97, and the stock is still likely to close well in the green.
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