a tech company that offers internet access to consumers and businesses...it has a good balance sheet and more cash on hand than debt.

A group including Steel Partners II reduced its position to 6,884,100 shares (6.5%) by selling 1,454,056 from May 20 to June 5 at $7.50 to $8.10 each.

Forward PE: 5.3 Short Ratio: 19

10.8

The company recently said its board authorized an additional $200 million buyback plan, bringing the grand total to $270 million. The buyback will provide some support for the stock and limit risk for investors, said the company. On the news, shares jumped as much as 12%.

The company also announced that it will cut about 900 jobs, or nearly half its workforce, and shut down 4 offices, as the new boss Rolla Huff executes his restructuring strategies.

"We expect to announce additional steps as we continue our work over the coming weeks and months,” Rolla Huff said in a statement. "While we recognize this is a difficult time for those affected individuals, this was a needed action for the company to better align our cost structure with our existing business," he added.

After the company announced its boosted buyback and restructuring plan, Jefferies & Company issued a positive report on the company. They reiterate buy rating with a $9.60 price target. Jefferies points out, "we view the announcement positively and believe that this and subsequent restructuring rounds will bring focus back to core business and on execution and increase profitability."

bought mindspring and got stuck.

The first reason we looked at EarthLink is because we saw brand new CEO Rolla Huff buy 100,000 shares for $750,000 the first day he look the job. He says he didn't do it to make a statement; and explains, "I did it because I think I am going to make a great return on that money." We like to see the company leader heavily invested because it shows he must really like the direction they are going and believes he will make money

"EarthLink’s mission has been, and at its core will be, the idea of bringing connectivity to interesting content and applications...bringing the power of the Web to the people," Huff says. "I can't imagine we would take a right turn off of that fundamental mission." But he adds that, "at the end of the day, we have to have a clear and focused strategy."

Jefferies & Co views the appointment of Rolla Huff as president and CEO as a positive and therefore awarded the stock a BUY rating with a price target of $10.60. EarthLink should benefit from Mr. Huff's 7 years experience in the telecom and internet industry said Jefferies, and they expect him to start formulating his business priorities and set strategic direction in the coming months.

Jefferies explains, "Given Mr. Huff's track record of not shying away from making tough decisions (he sold his last two companies), his appointment increases the prospects for a relatively quick and timely restructuring of the ELNK business, streamlining the core access business, restructuring or sale of underperforming assets, or even an outright sale of the company longer-term.” While Jefferies admits there is a lack or short term catalysts, they feel valuation remains attractive. “There is very limited downside in the stock due to its valuation and buyback program- roughly $90 million,” said Jefferies.

From Barron's 72-07:

"Rolla Huff got to work lasy week on a daunting mission: figuring out how to fix Earthlink...A pioneer in consumer dial-up Internet access, Earthlink for several years has been scrambling to find a new business model...Huff walks gingerly around the issue of what might be wrong with the existing Earthlink strategy...But I think Huff is going to move aggressively to remake the company...In short, Earthlink is going to be fixed, and soon. Eventually, it might be sold. Huff has not historically been shy about finding M&A exits: In 2006, he sold his previous company, Mpower Communications, for just over $200 million, and he was president and COO at Frontier Communications when it merged with Global Crossing. I wouldn't be surprised if Earthlink eventually goes the same route. Meanwhile, if Huff take the aggressive approach to remaking the business, holders should get a short-term reward."

The CEO recently purchased 100,000 shares or $725,000 worth of stock.

Upgraded by Cowen & Co from Underperform to Neutral

Their business model is dead.

Wasting cash generated by fading dial up business

dot com bubble

the ex-ceo was absolutely awful
he sadly just passed away from cancer at a very young age. I know this is supposed to be least favorite. But I would watch this very carefully as a possible turn-around or take out candidate, which means this may yet be a very bullish play, especially if it sinks below 7