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

To: Glenn Petersen who wrote (170)	1/14/2003 6:01:33 PM
From: Crossy	Read Replies (2) \| Respond to of 187

re: NasaqNM: STOR $1.37 - Breakout on increasing value I added STOR (StorageNetworks) to my portfolio of absurd value situations yesterday. and it posted a nice breakout on ascending volume today. Subject 14605 This looks like a great undervalued restructuring + growth opportunity: Storage Networking Software. CFO Flanigan who cut out all the fat of this mini-conglomerate was elevated to CEO. And the restructuring goes on. While revenues haven't slacked too much, Gross Margins are up huge, from 20% to 50%. STOR is already EBITDA positive. Cash per share at $1.55, Book value per share $2.15 at leat. Most recent employee reduction should enable STOR to achieve even higher gross margins >60% IMHO and profitability by the current quarter. I believe take-out value around $3, longer term perspective on some segment strength $5-10... In light of today's move, can only advise, not to sell for this 18% gain. Wait for the REAL action to come. I expect much improved financial condition, GAAP profitability on recurring items this quarter and steady growth in gross margins and diminishing SG&A. If management hadn't yet put a SHAREHOLDER RIGHTS plan in place, it would be NOW to do this.. In fact would like to encourage all on the board to CALL THE COMPANY in support of such a move... In this way we might be able to lift the takeout price from $3 to around $5. And in a for-stock deal EDS, EMLX, STR etc. will gladly cough up $5 per share for STOR as they would cough up $3 per share for it.. All a matter of perspective.. have a great day CROSSY