Buy - Price 26.34 on Jan. 2
by Needham & Co.

Our 32 target [is] based on 6 to 7 times our '09 revenue estimate of $300 million plus net cash of about $3 a share. End-user surveys indicate that data de-duplication is one of the top storage technologies gaining rapid adoption...DDUP has an early lead, with about 50% share, in a category estimated to reach $1 billion by '09. Its technology keys include global compression (20 times data reduction), invulnerability architecture and ease of integration into existing infrastructure....DDUP provides a compelling value proposition versus tape [and]... disk systems...Market cap: $1.8 billion.

Data Domain

Data Domain

Recent IPO was way overvalued by both the Underwriters and the street.

he is short Data Domain (DDUP), which provides back-up disk- storage products. He says the company faces "a ton of competition," and he finds its $1.9 billion market cap way too high; the stock trades at more than 17 times expected 2007 revenue.