Small Cap Stocks

Yesterday, Network Engines (NENG) reported quarterly results that were basically in line with expectations. Despite the fact that the stock is off about 25% from its high, I still believe that my basic investment thesis outlined in prior posts is intact and the I think the risk/reward is still favorable at current prices. Incidentally, I have bought more shares of NENG during the recent sell-off.

Investment Summary:
I believe that Network Engines (Nasdaq: NENG), at its current price of $1.88, represents a low-risk investment, with substantial upside price potential in the next several years, should NENG’s newly appointed, and highly experienced Chief Executive Officer, execute on some key business initiatives and position the company successfully in the high-growth network server appliance industry.