Internet Initiative Japan Shares Give Encore
In its earnings presentation, the company noted that the gains came despite increases in maintenance expenses and increased advertising. In addition, IIJ is making a larger portion of its revenue in higher-margin areas such as systems integration, which comprised 43% of its revenue but 60% of its gross margin.
Given the numbers in its most recent quarter, Wednesday's pop in IIJ's stock isn't surprising. And if the company can maintain its push into higher-margin areas of growth while keeping costs under control, there's reason to expect the stock to move higher over time.
But for the sake of its Tokyo listing, IIJ had better hope any gains in its stock price are gradual, not in another surge right before its new offering is priced. Though a second failed offering looks unlikely now, the consequences would be grim: it would send an awfully bad message to prospective investors.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV