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Technology Stocks : NENG: Network Engines, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Hal Campbell who wrote (116)	1/11/2004 8:17:42 AM
From: Amboy Charlie	Respond to of 186

Hal, I didn't expect you to turn up here, but I'm happy to hear from you. Happy New Year by the way. Siena's talking a blue streak these days, and eating us out of house and home. No, I'm not expecting this stock to be another AXC and I remain invested in it by virtue of the numbers. I only had a couple hundred shares at nine when it tanked and I got rid of them at six and something, and started accumulating when the trading got back down to normal levels, hoping for a January effect. I'm down about 14% and not too worried about it. I expect the the next few quarters figures will tell the tale, and I'll reap some decent profits next year. I'm just gonna have to accept the fact that the January effect ain't happening here. But I've had one hell of a good week with just about everything else I'm into, so even if worse comes to worse I can use some loses here to offset gains elsewhere.

To: Hal Campbell who wrote (116)	1/11/2004 9:15:08 AM
From: Amboy Charlie	Respond to of 186

Hal, Re: NENG You got me thinking about why I am still in this stock so I took a closer look at the numbers. I've got to admit that while they looked okay in October they didn't look so good December 29, when I wasn't paying such closeattention. Accounts receivable and inventories were both up considerably. Wonder if that could have anything to do with the disappearance of Gus et al from the board.

To: Hal Campbell who wrote (116)	1/11/2004 10:08:12 PM
From: Gus	Respond to of 186

Good points, Hal. Sales growth and sales mix remain the most important metrics for NENG. Message 19472883 In fairly short order, EMC has established Centera as the de facto platform for enterprise content management (unstructured data) with an installed base of more than 10PBs through 3Q2003 -- 2PB+ in 2003 and 8PB+ for the first 9 months of 2003. So far NENG has supplied all the nodes for that installed base and I don't expect that arrangement to change abruptly because it would be too disruptive to that installed base and ongoing channel efforts. Instead I expect that EMC will keep on making Centera available for any system vendor to manufacture on the same non-exclusive basis as NENG. So I expect that NENG's Centera business will continue to grow at high double-digit and even triple-digit rates for the next 18 months or so. I also expect to see NENG's other server appliance OEMs to grow more quickly than Centera off a much smaller base. The $5M/quarter and $10M/quarter revenue milestones are the ones to watch. With that kind of sales growth potential, I think NENG should be more creative about its acquisition strategy. Right now the stock is still washing out its ownership base and making a bottom while waiting to be picked up by fresh institutional and individual ownership. Institutional owners were the first to bail and they will probably only start to return based on fresh guidance from NENG when it reports earnings next month.