Actually jay, you might have a good point. It isn't to knock the culture, but they have different beliefs. They believe that the product will back the numbers up. They believe that there is no point in hyping the stock since it allows investors such as us, to buy more at these depressed levels. In the long-term, we will make out like kings.
I, however, can't buy anymore. It is by far my biggest holding right now at 65% of my holdings. Too much?
That is a joke. I know it is too much as a %, but I love the company and the fact that too many analysts aren't watching this sucker move. If and when PR actually begins, I will love it.
Here is a little info. on other companies & their number of shares outstanding.
SUNW - 195 million
CISCO - 600 + million
MICROSOFT - with split 1.2 billion?
Anyways, you guys get my point. Networks are going to be here for quite a while. However, I have one concern. As NC's start sometime late next year being connected to networks, the backpressure will become a key issue. Speed, as always, will reign, but the backpressure issue needs to be addressed. Currently, based on a link earlier this week to a site, N-base was rated very weak in this area and I wish they would pick this up.
The only concern that I have is that they will not be able to achieve the economies of scale that a Cisco or 3com can. I know this is ludicrous to say that they can, but Cisco is a BIG threat in terms of driving small competitors out of the market based on price.
From what I have seen, why would I choose an N-base switch over other networking companies switches?
I still think that the growth rate is phenomenal and will be there for sometime, but they will inevitably hit a crossroad where PR & better technology are key elements to maintaining the excellent returns for investors that they have given us.
I love the fact that their sales force has increased dramatically over the past year. 5 fold to those that don't know - it doubled when they acquired Fibronics- However, they must sell a tremendous amount to ensure that their salaries and commisions don't hinder the growth rate; Especially this early in the companies growth cycle.
Basically, to all salespeople who might read this, sell, sell, sell, sell........... you get the point!
I am holding onto this gem for 2-3 years unless they really screw up. If such an occurrence happens, see ya! I have other companies to invest in that could provide a higher % return based on risk vs reward.
Please let me know about the backpressure issue and other key issues guys. What are your opinions?
Dan Ross |
