NEI, a leading provider of server appliance products and services for storage, security and communications software vendors, recently announced that its Board of Directors has authorized the repurchase of up to $5 million of its common stock from time to time on the open market or in non-solicited privately negotiated transactions.

The stock trades for 8x cash flow.

"Trinad Management wants Network Engines to consider initiating a share-buyback program. Trinad says it strongly believes that the board has an "obligation to dedicate a portion of its cash reserve and free cash flow to projects which have the greatest return to shareholders, such as a share-buyback program." The investor also says that it believes that Network Engines is "significantly undervalued, and that a share-buyback program would improve investors' overall perception of the company's equity value." Trinad reported ownership of 2.85 million shares (6.5%)."

Microsoft affiliation