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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (2387)	2/8/1999 3:16:00 PM
From: P.E. Allen	Read Replies (1) \| Respond to of 52051

More news for SATH and "Throttle UP!!! Just cracked $29.00 More news today... quote.bloomberg.com. Shop At Home Plans Internet Expansion and Online Partnerships Shop At Home Plans Internet Expansion and Online Partnerships Nashville, Tennessee, Feb. 8 (Bloomberg) -- Shop At Home Inc., the third-largest U.S. home-shopping specialty retailer, will announce Wednesday it plans to expand on the Internet and form partnerships with major online companies. Shop At Home, which sells merchandise such as electronics, jewelry and sports collectibles on television and online, will use its network of broadcast and satellite stations and the Internet to reveal details of its Web plans, amid demand for Internet stocks like Amazon.com Inc. and eBay Inc. The Nashville, Tennessee-based company's Shop At Home network reaches about 60 million homes each day, broadcasting over 200 television stations, cable systems and satellite networks. ''The company has assured me that the partners are 800-pound gorillas in the Internet industry,'' said money manager John Ray, president of Legacy Asset Management Inc. in Atlanta, which owns Shop At Home shares. ''Shop At Home knows broadcasting, on-air talent and marketing. They need someone who has real Internet expertise.'' The company also will announce second-quarter earnings. Shop At Home is expected to earn 1 cent a share for the quarter ended in December, based on the average estimate of three analysts surveyed by First Call Corp. Shop At Home shares rose 2 3/8 to 27 1/2 in midafternoon trading of 3.95 million shares. Earlier, shares touched a record high of 27 3/4. On Jan. 28, the company said it would announce its Internet expansion plans on Wednesday at 7:30 a.m. New York time, causing the shares to more than double since then

To: Stock Watcher who wrote (2387)	2/8/1999 3:25:00 PM
From: Jerry S.	Read Replies (3) \| Respond to of 52051

I guess I'll keep bringing the value plays here to balance out some of the mo-mos: CMNT (Computer Network Technology) Has been beaten down as of late from the $17's down to $10 for no apparant reason other than profit taking and general market conditions. Here is a write up I found on the company which gives a good summary: Computer Network Technology Analyst: Will Frankenhoff 2/8/99 Looking for a way to play the networking boom without needing to pay 60 times earnings (Read: Cisco Systems (NASDAQ:CSCO - news) ? Try little known Computer Network Technology (Nasdaq:CMNT - news) , a small-cap provider of networking products and services which sells at a mere 15 times consensus 2000 estimates, a 47% discount to its projected 30% growth rate. Okay, we're not arguing that Computer Network Technology deserves a multiple anywhere close to mighty Cisco's. But, we do believe that the company has a strong niche position in the networking industry and deserves a closer examination, especially given the strength of its recent operating results. Computer Network provides networking products and services which permit high performance connectivity between mainframes, storage devices, local areas networks (LANs) and the Internet. These products are primarily sold into three markets: Channel Extension, Enterprise Access/Integration (EAI) and Storage Area Networking (SAN). While the market for Channel Extension products is expected to continue declining, from $207 million in 1993 to a mere $150 million in 2000, the growth of the SAN market is estimated to grow from $500 million in 1997 to $1.2 billion in 2000, according to Strategic Research Corp. SAN networks are used to connect storage devices, thus improving performance and flexibility on LANs (because storage is moved off of the servers.) And the EAI market, which enables servers to host web sites, is expected to grow by 40%-50% per year. The company counts over one-half the Fortune 500 as customers and is partners with a large variety of OEMs such as IBM (NYSE:IBM - news) , Sun MicroSystems (Nasdaq:SUNW - news) and EMC (NYSE:EMC - news) . Revenue for the fourth quarter ended December 1998 increased 14% to a record $36 million, driven by a 12% increase in product revenue and a 16.7% increase in service revenue. Earnings of $0.11 per diluted share (before charges) beat estimates for the second consecutive quarter and represented a 267% increase over last year's period. Gross margins improved 340 basis points to 60.4% due to a greater mix of high-margin EAI Internet products. Operatingmargins of 10.4% represented a 710 basis point gain driven by the above-mentioned gross margin improvement as well as a decline in engineering and development costs, which fell 400 basis points to 13.7% of sales. So the stock, which has more than tripled to $10.94, remains a compelling buying opportunity. Computer Network is trading at 21 times consensus 1999 estimates of $0.46 per share and 15 times consensus 2000 estimates of $0.73 per share. Given the migration to EAI and SAN platforms, which are expected to drive annual growth in these areas at a 40%-50% rate over the next few years, the company could trade at a richer multiple. Bottom Line: Given management's ability to drive margin improvement, we believe that shares of Computer Network Technology could be trading in the $18 range, or 25 times FY 2000 estimates.