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Technology Stocks : Storage Computer Corp (SOS)
SOS 1.715-3.4%Jan 15 3:58 PM EST

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To: KFBLY who wrote (49)9/7/1997 12:17:00 PM
From: Jeff Lawlor   of 134
 
Anyone still following this one?

In doing some research looking for opportunities, SOS popped on to the screen looking real good in terms of revenue and earnings growth.

Revenue up 32% in Q2 and 36% for 1st 6 months of '97. Net Income up 75% in Q2 and for the 1st 6 months of '97.

Insider holdings around 70% which is good and bad. It's good that the executives have a strong vested interest in the performance of the company and bad that it leaves small float for institutional/momentum players. It also doesn't help that it trades on AMEX. Usually all of this equates to a lack of exposure.

With a trailing P/E around 25 and an expected growth rate of 50% (middle ground between revenue growth of 30% and earnings growth of 70%), SOS has a PEG of 0.5. I think this growth rate is conservative given earnings drives stock price and earnings has been growing in the 70-80% range.

I really believe this is an undiscovered gem right now. SOS is an emerging high-tech company with little exposure so it leaves a tremendous amount of room for stock price movement when the size of the company finally puts them on the radar screen and momentum players begin to push up the price.

All IMHO of course. Any comments are welcomed and appreciated. I'm looking to get in real soon.

Regards,
Jeff
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