StorageNetworks, Inc. (STOR) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : StorageNetworks, Inc. (STOR)

STOR 32.21

0.0%

Feb 3 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: The Other Analyst who wrote (45)	7/21/2000 12:57:59 PM
From: Bill Fischofer	Read Replies (1) of 187

Re: Valuations While I would not try to defend STOR's current valuation, history has shown repeatedly that shorting on valuation in new markets is a high risk strategy. I think one of the reasons for this is that estimates of market size for new markets tend to be wildly inaccurate. Dataquest is in business to publish reports. This doesn't mean that they have any reliable insight into what the real market size for outsourced storage will be in 2003 or any other year. If you take that $8 billion guesstimate as gospel then the valuation argument looks reasonable. But the real question is what the growth trajectory of the market will look like rather than trying to pin an absolute number on it at some specific future point in time. That being said, I've no doubt that STOR will be volatile and will present profitable shorting opportunities for those so inclined. Perhaps the lowest risk time to look for such opportunities would be as the 180-day IPO lockup period expiration approaches.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next