Monday, 29 October 2007

Storage Stocks

Josh's recent posts have reminded me of a little piece of work I started but didn't finish a few weeks ago.

I've been compiling a list of storage companies which are publicly traded and trying to determine which I feel are value for money as an investment.

** DISCLAIMER ** This blog does not provide investment advice and all opinions on the values of stocks are mine entirely. You should not act upon these opinions but make your own judgements on the merits of investing in any company.

Phew, now that's done, let's get on with it. I guess the first question is why am I doing it? Well, of all the industries in which to invest, I would like to hope I understand the most about storage IT companies than any other. I say hope, as understanding what makes a company good as an investment will be not just their current figures, valuation etc, but rather there future potential for generating revenue and business. That's where things get difficult. There are the easy major players which are guaranteed to make revenue; just think of EMC, Cisco, IBM, Sun, Seagate, Netapp and so on. These companies have established businesses and make money. However not all pay dividends, so money has to be made on capital growth from some of the shares. There are also plenty of blips and gotchas to deal with. For example, Sun and Netapp - how has their current "misunderstanding" over patent rights affected shares?

Then there are the startups which then go IPO. Compellent recently floated. 3Par are planning to. How can these businesses be evaluated (other than by gut instinct) to see whether they are worthwhile?

So, for fun only (which is the main reason for doing this) I will be attempting to review one stock per day, which I will discuss and give my opinion on. I stress - *my opinion*. I could be (and probably will be!) wrong, however those I believe are worth investing in, I will start a "fantasy" investment portfolio just to see how things go!

If you have any opinions or comments, feel free to add them. The first company under review tomorrow will be Seagate.

1 comment:

Josh Maher said...

I don't have my personal portfolio listed on the site (none of the stocks in the game I actually own)... but I am making the most money off of VMWare :) more than double considering today's close of $120.78!!