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

To: Bill Fischofer who wrote (46)	7/21/2000 1:15:38 PM
From: The Other Analyst	Read Replies (1) \| Respond to of 187

Your points are well taken. Thanks for the response. But it seems to me that data storage for others does not qualify as a breakthrough new market that is hard to estimate. It does not seem to me to compare to fiber optic, or genomic research, or the Internet as a huge new market that has explosive growth. Customers can (and mostly do now) do it (data storage) themselves. If you offer them a better way to do it, they may well accept. But it is not a service that STOR can provide at 1/10 the cost, or some such dramatic savings. And others can do it as well. One other valuation benchmark I came up with while reviewing the prospectus....STOR plans to spend $700 million over the next 5 years to build out the network. Since a competitor could presumably do the same, a $14 billion market cap looks way too high. If the business were really worth even $10 billion, a competitor would be attracted to lay out $1 billion to make the 10 to 1 return.