Tom Shaughnessy
Long/short equity, special situations, deep value, tech

Dot Hill Systems: Recent Sell-Off Offers Clear Path To 95%+ Upside By Year-End With Limited 16% Downside


Shares of Dot Hill Systems (NASDAQ:HILL) have declined over 30% following the company's recently reported 4Q results, creating a compelling buying opportunity. With shares up almost 4-fold in 2013, and almost another 50% in 2014 prior to the earnings report, expectations were high. The company's in-line 2014 outlook, coupled with soft 1Q guidance drove the sell-off. However, with significant wins slated to ramp in 2014, and a management that has executed, and under-promised and over-delivered in the recent past, there's every reason to believe Dot Hill's growth and margin expansion story remains intact. I believe shares of Dot Hill should see 95% upside and a return to recent highs over the next few quarters, and could be

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