YEEHAW CANDIDATES Message Board

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Strategies & Market Trends : YEEHAW CANDIDATES

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To: Sergio H who wrote (970)	1/13/2003 8:12:31 PM
From: Crossy	Read Replies (2) of 23958

Sergio, I'd like to forward another idea of mine .. STOR (Storage Networks) $ 1.17 (NasdaqNM) It will require some patience as it seems locked in a bottoming out trading range of $0.90-$1.80. The fact that's trading below cash, has gross margins of > 50% and already EBITDA positive, plus in the SOFTWARE industry, in one of the better segments: storage networking software makes me very confident of its potential. This looks like a great undervalued restructuring + growth opportunity: Storage Networking Software. CFO Flanigan who cut out all the fat of this mini-conglomerate was elevated to CEO. And the restructuring goes on. While revenues haven't slacked too much, Gross Margins are up huge, from 20% to 50%. STOR is already EBITDA positive. Cash per share at $1.55, Book value per share $2.15 at leat. Very little debt. Most recent employee reduction should enable STOR to achieve even higher gross margins >60% IMHO and profitability by the current quarter. I believe take-out value would be around $3, longer term perspective on some segment strength $5-10... Catalysts would be the announcement of the current quarter, a Reverse split (would be positive announcement here) to reduce outstanding shares or more insider buying. Goldmann Sachs already gobbled up cheap shares and now owns more than 7m or 7% of the company. My kudos go to cudawuda (often posting at RatDog thread) who prompted me to explore this company.. rgrds CROSSY

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