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Technology Stocks : Storage Dimensions - STDM

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To: nick cash who wrote (246)9/25/1997 3:05:00 PM
From: kvogel   of 311
 
nick. Sold at 5 1/4. Expect the stock to trade between 4 and 6 for next 2-3 months so it is dead money. Even if they increase the sales force it will take several months before these new people meet quotas (this according to management). This is a typical case of a company good technically but mismanaged from a business standpoint. Awards in PC magazine don't pay the bills. Because the PC-LAN market is growing at 30 % opportunities will be there for a while but a competent sales force is a must. I believe the stock will come back to the 4 to 4 1/2 range again and I might re-enter then. Basebuilding and confidence rebuilding will take awhile so I am out for several months. Your evaluation of the sales force problem was very useful in helping me to make decisions. I'm still going to follow the stock.

Karl
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