Buying IIJI - Internet Initiative Japan

What does Internet Initiative Japan Do?

The Internet Initiative Japan (IIJI) offers a comprehensive range of Internet connectivity services and network solutions to its customers in Japan. It also offers its services on one of the most advanced and reliable Internet networks available in Japan.

IIJI - Beyond Internet Access

IIJI's established services include Internet access, systems integration and security, hosting, and content design.

As of June 25, 2008, IIJI operated, in Japan, 12 points of presence (POPs) for dedicated access, 13 Internet data centers and a universal POP for nationwide dial-up access. Its network also extends to the United States. The total capacity between Japan and the United States is 40.8 gigabits per second.

The Bulls: IIJI Heavily Undervalued on Fundamentals

The Internet Initiative Japan (IIJI) is a leading network solutions and Internet access provider in Japan. It is moving forward with print on demand services that will allow providers in the financial industry to reduce storage and distribution costs.

Unlike it's larger competitor Nippon Telegraph & Telephone (NTT), it is growing at a rapid clip, and is severely undervalued in terms of the fundamental valuation ratios listed above.

We believe the precipitous drop in the Japanese technological sector over the past year is unwarranted, and that at this price, this stock presents a buying opportunity.

The Bears: IIJI is Small, Will Fall to Nippon

Internet Initiative Japan (IIJI) is not nearly as profitable as its larger competitor, Nippon Telegraph & Telephone (NTT). While its sales are increasing dramatically, its profit margins are a third of those of Nippon. It is a smaller company, and if it runs into cash flow issues, inventory problems, and begins piling on debt, it may be swallowed up by its competitors before it has a chance to reach a competitive position.