Network Engines (NEI)

[blueskywaves]

Hey Kevin. Based on Nasdaq data, institutional ownership was 22.2% as of 3/31/2003. 13 institutions held 7.5M shares. 3 institutions established new positions (2.7M shares) while 2 institutions sold out their positions (0.7M shares) during the reporting period ending 3/31.

Based on a study by the Heritage Foundation, a stock like NENG with O/S of 33.5M shares and a market cap of around $140+M would typically have institutional ownership of 36%-40%. Average institutional ownership for the S&P 500 was also around 66% the last time I checked.

http://www.heritage.org/Research/Taxes/loader.cfm?url=/commonspot/security/getfile.cfm&PageID=40....

I think that it will be institutional buying that will power the expansion of NENG's sales multiple as it keeps on putting strong sales numbers on the board and as it becomes cash flow positive and profitable. Right now, NENG is already within reach of the $100M annual revenue run rate or $25M a quarter.

NENG has also ended up 10 out of the last 12 weeks.

Network Engines (NENG)
Weekly Stock Data
Last 12 Weeks
.

 
   Week       Weekly    Weekly     Ave. Daily 
  Ending      Close     Return   Volume (weekly) 
 . 
 04/04/03    $ 1.56       4.0%        109,660 
 04/11/03      1.59       1.9%         59,880 
 04/17/03      1.75      10.1%        144,600 
 04/25/03      1.84       5.1%        310,260 
 05/02/03      1.86     ( 1.1%)       189,400     
 05/09/03      2.23      19.9%        220,700 
 05/16/03      2.19     ( 1.8%)       260,720   
 05/23/03      2.48      13.2%        369,560 
 05/30/03      2.59       4.4%        571,650 
 06/06/03      2.76       6.6%        164,624 
 06/13/03      3.66      32.6%        338,620 
 06/20/03      4.34      18.6%        656,213 
 . 
 Change       +178%                     +498%    
 .          
 Have a good weekend! 
 .