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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (3242)	1/14/2003 5:41:58 PM
From: Crossy	Respond to of 37387

re: STOR What a nice breakout. Can only advise, not to sell for this 18% gain. Wait for the REAL action to come. I expect much improved financial condition, 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

To: Crossy who wrote (3242)	1/14/2003 6:44:06 PM
From: The Ox	Read Replies (3) \| Respond to of 37387

Hi Crossy, Yes, I think STOR could be a nice gem in the rough. As you have stated, the key for them going forward is their ability to restructure expenses in line with their revenue forecasts. I think the market will continue to "value" STOR at a fraction of tangible book, until they can show the turnaround has been completed. My view is the stock has at least a 50% upside from here. I haven't done any real digging into STOR since the middle of last year, so I'll add them back to my research port. I started looking back at some of the stocks I follow that are trading at a substantial fraction of book value and AXTI keeps popping up. However, AXTI's revenue is still declining and I think there's very strong a possibility that some of their "tangible" assets will be written off. They have completed most of their "big move" to China. If they get their cost of goods structure ironed out they should do fine. After my back of the napkin discounting, I think they have a book value of about $3.50/share (or more). I've written off one third of their current $122 million asset value, mostly a question of true value of their inventory going forward and whether or not they will get stated values of any property and plant in a sale. I watch STOR but don't own them presently. I bought a good size batch of AXTI back when it was selling for $1-$1.10 and dumped from $1.50 to $1.70 during the last run up. Obviously, I bailed way to early but I had other places to put my money at the time. I just recently added a batch of AXTI that's ready to sit around collecting dust or drift downward<vbg>. AXTI has already pre-announced another poor quarter so I don't see this one going anywhere before February or March but I like the "valuation", so I'm back in. I know that you were watching a bunch of the Japanese stocks in the same sector. I can barely keep up with the most of the companies I'm trying to track on the US indexes, so I can't assist you there. I haven't moved on any of your other excellent pointers lately but I have been watching your "runts" run. I'm getting ready to put more cash to work here in the next few weeks, so I'll be reading your thread as time permits and I hope to be able to contribute in the future. m