Top 10 Penny Stocks To Invest In 2015

Top 10 Penny Stocks To Invest In 2015: EarthLink Inc.(ELNK)

EarthLink, Inc. provides communications services to individual and business customers in the United States. It operates in two segments, Consumer Services and Business Services. The Consumer Services segment offers Internet access and related value-added services. It provides dial-up Internet and narrowband access, broadband access, and voice-over-Internet-protocol services, as well as value-added services that include products for protection, communication, and performance, such as security products, premium email only, home networking, email storage, and Internet call waiting. This segment offer its products and services primarily through its call centers, search engine marketing, affinity marketing partners, resellers, and marketing alliances. The Business Services segment offers integrated communications services, such as secure IP-based networks, virtual private networks, Internet access, local telephone and long distance services, enhanced services, access trunks, pr ivate line services, asynchronous transfer mode/frame relay services, and mobile data and voice services, as well as installation, managed network, remote access, and disaster recovery services. It also provides wholesale services comprising broadband transport services, including private line, Ethernet private line, and wavelength services; local communications and local dial tone communications services; live and automated operator, and directory assistance services; and dedicated Internet access services and direct connectivity. In addition, this segment leases server space and provides Web hosting services that enable customers to build and maintain an online presence, including domain names, storage, mailboxes, software tools to build Web sites, e-commerce applications, and 24/7 customer support. This segment offers its services through direct sales, and independent dealers and sales agents. The company was founded in 1994 and is headquartered in Atlanta, Ge! orgia.

Advisors' Opinion:

• [By Rich Duprey]

  Continuing its efforts to transform itself from a pure Internet service provider into an information technology company, EarthLink (NASDAQ: ELNK  ) announced Monday it is buyingcloud computing and hosted IT services provider CenterBeam for $22 million.

• [By Geoff Gannon] nflation growth: Dun & Bradstreet (DNB)

  路 Inflation plus population growth: CEC Entertainment (CEC)

  路 Nominal GDP Growth: Village Supermarket (VLGEA)

  Over the last 10 years population growth, inflation, and real output per person growth has been so low its hard to tell the difference between companies growing at the rate of inflation, along with the population, or along with the economy.

  You have to squint really hard to see any difference in the revenue growth records of DNB, Chuck E. Cheese, and Village.

  This will not be true in all countries and at all times.

  A literally no growth company like Earthlink is actually shrinking. It just happens to look like its staying perfectly flat because inflation is hiding the companys real decay rate. In real terms, the company has been shrinking by about 3% a year for the last 10 years. So, Earthlink is not a no growth company. Its shrinking.

  Thats a bad sign. And, fran kly, I dont know how to value Earthlink. You would need to evaluate it as a turnaround or something not as a business thats simplly stuck in place. I dont know how to do that.

  So, Earhtlink goes into the too hard pile.

  Dun & Bradstreet and CEC Entertainment are actual no growth businesses. This is hidden by their constant share buy backs. So, if you look at their earnings per share growth they look kind of like Peter Lynchs idea of a slow growth company or even a stalwart. They arent. Theyre no growth businesses.

  The same is pretty much true with Village Supermarket. Although this is complicated. The nature of their business high volume, low cost g! roceries ! means they can appear to be a no growth business when they are actually just keeping prices down and increasing volume. You would need to check their sales numbers more carefully. Grocery stores often discuss inflation in their annual reports. Village Supe rmarket always does t

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