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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (7596)	3/12/2001 11:40:45 AM
From: Sir Auric Goldfinger	Read Replies (2) \| Respond to of 19428

Auric v. Needham, e learning Cos. have revenues that are 50% of plan this month, POSO a major short.: POSO ProsoftTraining.com (POSO/OTC) $10.50 FY Revenues (mil) EPS* Dalton L. Chandler (212) 705-0315 Was Is Was Is Rating: Initiating Coverage with a Buy Rating 7/02E New $63.6 New $0.51 Target Price: $17 7/01E New 43.4 New 0.31 Market Cap. : (MM) $268 * Cash EPS adds back depreciation, amortization and restructuring charges and deducts tax benefit. * We are initiating coverage of ProsoftTraining.com ("Prosoft") with a Buy rating and a six-to-12 month price target of $17. * Prosoft is a provider of job-specific technology training content and certification. We believe its Certified Internet Webmaster designation can become the industry standard certification for developers and engineers in Internet-related jobs. * Prosoft's growth is driven by the expanding need for IT training, which is growing at an estimated 12% per year, from $9.6 billion in 1999 to $16.4 billion in 2004. * Prosoft also benefits from the growth in IT-oriented e-Learning, which is expected to grow from $0.9 billion in 2000 to $5.3 billion in 2004. * The need for functional certification (versus product-specific certification) is driven by the growth of the Internet and open networks based on open standards. * In addition to courses related to its proprietary certifications, Prosoft is also developing course content in complimentary subject matter such as Java, XML, Linux and A+. * Prosoft is one of the few companies in the e-Learning universe that is profitable and it has earned an operating profit for the last six consecutive quarters. * The balance sheet is in good shape with $11.4 million in cash, no debt and days sales outstanding at 56. Storage Networks, Inc. (STOR/OTC) $10.00 FY Revenues (mil) EPS Glenn Hanus (212) 705-0361 Was Is Was Is Rating: Reiterating Buy 12/02E $315.8 $300.5 $(0.22)$(1.04) Target Price: $18 (was $50) 12/01E NC 143.9 NC (1.38) Market Cap. : (MM) $930 * STOR should meet our F1Q01 revenue and EPS loss estimates of $25.9 million and $0.35, respectively. * We believe that the latest negative macro trends have led to push-outs of some storage outsourcing projects. Offsetting some of these push-outs appears to be traction in both STORmanage and new customer wins. * Due to the continued dot-com fall out and the overall IT spending malaise, we believe that our F2002 estimates may be aggressive. We our lowering our revenue from $315.8 million to $301 million, and our EPS loss to $1.04 from a loss of $0.22. * We are maintaining our Buy rating, but lowering our price target to $18 based on 5.5x C2002 revenues of $301 million, a discount to the current 7x C2001 estimate. This report is for information purposes only and does not constitute a solicitation or an offer to buy or sell any securities mentioned herein. While the information contained herein has been obtained from sources believed reliable, we do not represent that it is accurate and it should not be relied upon as such. Any opinions expressed herein reflect our judgement at this date and are subject to change from time to time. This firm and/or its directors, affiliates, officers, employees or members of their immediate families may have a long or short position in the securities mentioned in the report or in options, futures or other derivative instruments based thereon. Needham & Company and/or its affiliates may make a market or deal as principal in the securities mentioned in this document or in options or other derivative instruments based thereon. Needham & Company may have managed or co-managed a public offering of or acted as initial purchaser or placement agent for a private placement of any of the securities of any issuer mentioned in this document within the last three years, or may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any company mentioned in this document. Additional information on the securities mentioned is available on request. c Copyright 2001 Needham & Company, Inc.