It seems that there is going to be some serious pricing pressure going forward, and that the margins will soon indicate why this is selling at a PE of 15 and a PEG of under 1. Very similar to the JCOM story over the last 6 months. The lack of buying at this level is concerning, given our high expectations for this stock moving forward. Then again, XMSR went to $10 a couple years back, down to $1.50, and up to the $30's. Harder to do with NENG because XMSR had only SIRI as it's competitor and they were signing up a lot of automakers to make that bounce happen. NENG competition, thats another story. IBM makes thier own blades now instead of contracting from NENG, and HP and NTAP are aggressively in this now too.
That's not to say they can't make it, but the risks are definately showing now. Thier deal with Facetime is interesting to me because it is exactly in the industry I do work in, and Facetime has a lot of credibility amongst financial services.
