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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Fletcher who wrote (709)	3/10/2003 4:42:52 AM
From: Dale Baker	Respond to of 1931

STOR is interesting - they are admitting their current business has failed, so they are looking for something new with their cash hoard. Reducing their cash burn to zero is a very positive step. Worth following - thanks for the mention. "Due to the immaturity of the storage resource management market, the confusion caused by the high number of companies in the market, and the overall difficult economic environment, we did not have enough success selling our software products to continue to support the company's cost structure," stated Paul Flanagan, President and Chief Executive Officer of StorageNetworks. "We believe that the market for storage resource management software is a great opportunity. There are definite needs to be solved in managing complex, heterogeneous storage environments," continued Flanagan. "However, we decided that the best course of action we could follow for our shareholders, our customers, and our employees is to maintain our strong balance sheet and reduce our spending while we focus on developing or acquiring products." The company stated that it will also focus its efforts on the following: Maximizing the value of its managed service business and satisfying its customers and partners needs, and Actively seeking out companies to partner with or acquire that have revenues, established channels and leading technology. "At December 31, 2002, we had net cash of $186.4 million, a slight decline from $186.6 million at September 30, 2002, and an increase from $184.3 million at December 31, 2001. Our days sales outstanding remained strong at 45 days," stated Scott Dussault, StorageNetworks' Chief Financial Officer. "We have a strong financial position that enables us to invest in partnerships and acquisitions that will improve shareholder value."

To: Thomas Fletcher who wrote (709)	3/10/2003 8:18:15 PM
From: stock leader	Respond to of 1931

Yea STOR seems ok for some investment. But remember that STOR has $82 million in liabilities/debt on it's books. Even that being said, i would believe STOR should realize somewhere over 1.20 per share for their shareholders. Once the company speaks of maxing s/h value they usually mean it--especially when the company is already trading below cash levels. Probably will take STOR 2-3 months min to make a decision....so if you're patient you should do ok I'll keep it on my watchlist. i am not buying right away

To: Thomas Fletcher who wrote (709)	3/10/2003 8:50:21 PM
From: stock leader	Respond to of 1931

Be wary of this though..... " The company stated that it will also focus its efforts on the following: Maximizing the value of its managed service business and satisfying its customers and partners needs, and Actively seeking out companies to partner with or acquire that have revenues, established channels and leading technology. " If STOR buys out some schitty firm with 1/2 their cash, price will likely tumble. CORV was a recent schitty company to use a chunk of cash on a worthless acquisition and look what happened to price. So just be wary. I don't like the fact that STOR may well buy out some crappy assets in a depressed tech market