Monday, December 30, 2013

Dot Hill Ends 2013 on a Positive Note

Although it is a small cap, obscure stock, I decided to write up Dot Hill (HILL), the data storage equipment maker, for Seeking Alpha:

Nearly Quadrupling In 2013, Dot Hill Still Has 2X Potential In 2014

Data storage requirements seem to be endless: everyone wants to store video, and video inherently requires a lot of storage capacity. Throw in vast quantities of alphanumeric data, and with the demand for permanent instant access, you need a lot of drives, whether hard disk or solid state or even tape. Dot Hill has some very good technologies for handling all that, when you need boxes full of drives with wide pipes to the rest of your datacenter. Nothing is guaranteed in the world of small-cap stocks, but 2013 was a turnaround year for HILL. On the other hand 2012 was a bad year, which is why HILL's stock price at the beginning of 2013 was so low.

My data other storage stocks also did well this year: Marvell Technologies (MRVL) and Seagate (STX). I suspect corporations have been under-investing in storage technology for the past few years. If so, 2014 could be the catch-up year. Some one should probably make a data storage index fund.

My article was published yesterday evening, and Dot Hill rose $0.12 today (3.7%) to close at $3.37. Probably not due to my article, since the last time I wrote a positive article on Dot Hill, in August, a sell-off followed.

I own shares of Dot Hill. I am a long-term investor. I may buy or sell shares from time to time depending on how the stock price matches up with my view of the stock's value.

You can see my notes on Dot Hill analyst conferences, and a list of all my Dot Hill articles at Dot Hill at

Happy New Year!

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