Network Engines (NEI)

[blueskywaves]

Good for you Raymond! Under $2 would have been better, but this is going to be a great stock to average up into if they keep on executing well.

NENG is currently growing faster than any of its storage networking peers below so keep an eye on them as well so you can maybe catch some of the trademarked rotational moves of some long-time storage investors, particularly the institutions.<g> As a point of reference, the enduring urban legend in storage networking circles is the former ANCOR which skyrocketed from less than $1 to more than $80 in the late 90s before it got taken out by Q-Logic around $50-$55 per share.

FALC and VIXL trade more on potential than anything else. HIL now derives nearly 50% of its revenues from Sun, which also resells storage gear from Hitachi and LSI. NENG now derives nearly 50% of its revenues from EMC with the other 40%-50% coming from distributing the products from the likes of Brocade, McData, Q-Logic and Emulex, which combined control more than 85% of the Fibre Channel Switch & HBA market.

 
 Selected Storage Networking Stocks 
 FALC vs VIXL vs HIL vs NENG 
 Selected Financial Data 
 . 
                                                       Average 
                              Market     TTM             Daily 
                     O/S       Cap      Sales     PSR   Volume 
 . 
 . 
 FalconStor (FALC)  45.6M    $277.3M   $12.3M    22.4x    132k 
 Vixel (VIXL)       23.3M     165.4M    21.4M     7.7x     79k 
 Dot Hill (HIL)     32.2M     379.6M    66.7M     5.7x    324k 
 Network Engines 
 (NENG)             33.5M     145.8M    34.8M     4.2x    272k 
 . 
 . 
 . 
  
 Technical Analysis 
 FALC vs VIXL vs HIL vs NENG 
 . 
 . 
            Divergence      Divergence 
              from             from            YTD 
             50 DMA          200 DMA       Stock Return   Beta 
               (%)             (%)             (%) 
 . 
 . 
 FALC        48.80%           58.95%          77.83%       NA 
 VIXL        74.23%          168.23%         255.00%      2.95 
 HIL         37.85%          144.30%         280.32%      1.56 
 NENG        95.90%          207.49%         335.10%      1.89 
 . 
 . 
 Beta - The Beta used is Beta of Equity. Beta is the 
 monthly price change of a particular company relative 
 to the monthly price change of the S&P500. The time 
 period for Beta is 5 years when available, and not  
 less than 2.5 years. This value is updated monthly. 
 . 
 Sources: Yahoo/Multex