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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: The Other Analyst who wrote (45)	7/21/2000 12:57:59 PM
From: Bill Fischofer	Read Replies (1) \| Respond to of 187

Re: Valuations While I would not try to defend STOR's current valuation, history has shown repeatedly that shorting on valuation in new markets is a high risk strategy. I think one of the reasons for this is that estimates of market size for new markets tend to be wildly inaccurate. Dataquest is in business to publish reports. This doesn't mean that they have any reliable insight into what the real market size for outsourced storage will be in 2003 or any other year. If you take that $8 billion guesstimate as gospel then the valuation argument looks reasonable. But the real question is what the growth trajectory of the market will look like rather than trying to pin an absolute number on it at some specific future point in time. That being said, I've no doubt that STOR will be volatile and will present profitable shorting opportunities for those so inclined. Perhaps the lowest risk time to look for such opportunities would be as the 180-day IPO lockup period expiration approaches.

To: The Other Analyst who wrote (45)	7/21/2000 9:06:53 PM
From: Rupert	Read Replies (2) \| Respond to of 187

> "Anyone see something I am missing?" Yes. George Gilder. He added it to his closely followed list of "cosm" stocks just before the IPO. I think STOR is currently valued beyond all reason. How much more future growth potential could you possibly stuff into a market cap? It's great that everyone who bought it on the open market on the first day has made money, but I'd be a seller at these levels if I was currently an owner of the stock. Problem with these massive market caps is that the companies can't afford the slightest mis-step. For example, remember how explosive IPO FMKT behaved after it lost a big account soon after it went public. Outsourcing storage on-line makes sense of course, but I wonder if this will become a commodity service that we can play by owning the large web hosters (EXDS, Q, GBLX) that may end up hosting or managing a lot of these services (?).