To: Ocean_Joe who wrote (23450 ) 7/22/1999 12:44:00 AM From: Kerry Lee Read Replies (1) | Respond to
I respectfully disagree with your rationale but not necessarily your timing. I agree with your comment on analyst coverage/roadshow. However, I highly disagree with those on Yahoo who contend that earnings visibility is the driver of the short term stock price, eg, look at the valuations of both BRCD and ZOOX, both of whom have never come close to making a quarterly profit. New OEM deals/announcements and revenue ramp are the main things Wall Street is looking for, mainly to confirm 2 things : 1. that there is a growing market/demand for the technology/SAN market and 2. that Company X is a major "player" in the FC/SAN space. Wall St analysts will come up with their own projections of FC/SAN market growth and then estimate various market shares/revenue forecasts for the major companies, probably out to 2002. They are likely to base stock price targets on 3 years out projected revenues/earnings discounted back to the present. This is a contributing factor in Ancor's decision to go with the specific underwriters ( Monty/BA, Bear Stearns and Morgan Keegan..Kinnard was payback for sticking with the company for 5 years )who had expertise/analysts who closely follow the FC industry ( with the exception of Kinnard ).
