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Brian: I think Vixel is undervalued because its last ER was hopelessly misunderstood. Speaking broadly, Vixel came late to the fibre channel table. For example, it didn't have a switch until it acquired a small company shortly before its IPO. The proceeds of the IPO, of course, were intended to allow Vixel to transition into the fibre channel business on a full time or dedicated basis. The last ER, however, caught Vixel in the middle of the switch (no pun intended) and is only understandable in that context. Briefly, Vixel lost money (comparatively speaking) on its previous business (most of which was in the process of being sold), and its increased revenue from its infant fibre channel business, while impressive comparatively speaking (up 167%), was not sufficient to offset those losses. Withal, Vixel's earnings "dissappointed" the Street. I could go on, and I'm sure others will, but I think it's more profitable to focus instead on Vixel's progress. Once again, its first switch provides a good example. Called the 2000 , it has since been replaced several times by increasingly improved ones. The latest one, the 7200, has 16 ports and is probably better (or at least more compact and user friendly) than Brocade's. Meanwhile, as near as I can tell, Vixel & Brocade have the only 16 port switches. I could go on and talk, in part, about our hubs and patented software, but I think I've said enough to make my point: Vixel is growing its business at a rapid and orderly pace and the longs will be rewarded nicely for their patience . btw, I'm in @29, but recently bought more @34-35, and now have more than 5k shares. BJ |
