Technology Stocks | Cistera Networks (CNWT)


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From: Lhn54/9/2008 11:58:30 PM
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Cistera tapped to present at CSCO Partner Summit...check out page 16

cisco.com 

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From: Lhn54/19/2008 7:06:00 PM
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The following slides and explanation were sent out to interested parties by Cistera IR. Anyone can sign up for this email list at the website www.cistera.com or by emailing Kathy Lane at Klane@cistera.com




Last week Cistera participated in Cisco's World Wide Partner Summit in Honolulu, Hawaii. This is the biggest event of the year for Cisco and Cisco Value-added Resellers (VARs) from around the world, and it was a great opportunity to increase the company's visibility. The Industry Solution Partner Network (ISPN) was a key focus of the event, so the presentations highlighted its value to VARs. Cistera was one of the first applications providers to participate in the program, so in addition to being invited to have a demo booth in the Technology Solutions Forum throughout the three day event so that VAR representatives could see the Cistera solutions in action, Derek Downs, president and CEO, participated in several events including two panel discussions for media and industry analysts and was a speaker for the Government breakout session.

Derek spoke at the "Grab Your Share of the Infinite Possibilities in Government" along with Bryan Tate, Chairman and CEO of VAR partner Digitel and Frank Ruge, Cisco's Global Industry Lead for Government. The complete slide presentation is available at: cisco.com 

Slides 22 and 23 are of particular interest to Cistera investors.






This slide shows the impact of Cisco's Industry Solutions Partner Network (ISPN) which was launched in September 2007 on Cistera's pipeline. Cistera has actively assisted VARs in the registration for this program and in developing their Go-to-Market plans, which qualify them for the Solution Incentive Program--additional discounts on Cisco gear if VARs sell solutions including third party applications. The light blue bars reflect quotes provided to VARs that are approved for the program and the discounts. The dark blue bars reflect quotes provided to VARs that are engaged in the application process but not yet approved. The sum of the two bars reflects the pipeline of quotes for each quarter. The quarters reflected are calendar quarters, thus Q2 represents the pipeline estimate for the current quarter as of the date of the presentation. The pipeline includes all requested deal quotes, and should not be confused with actual or projected revenues. Cistera further defines booked orders and installed orders which are not broken out here. Orders are booked when received and revenues are recognized in the quarter in which orders are installed. Of particular note...even VARs that are not yet approved for the additional discounts have increased the number and size of quote requests as a result of solution selling.








Cistera was mentioned as a key partner in the presentation "Collaboration in Practice" which addressed how partnerships drive industry solutions, and featured the Industry Solutions Partner Network (ISPN) program. The presentation focused on the increased size of deals, margins and customer retention realized by solutions sellers. The panel included Mark Hiltz, President of INX, a Cistera VAR partner, and one of the nation's largest Unified Communications Solutions providers.

The presentation is available here:http://www.cisco.com/web/learning/le21/le34/partnersummit/2008/partner/presos/MS_101.pdf

Slide17 discusses Cistera










As a result of solutions selling in the ISPN program, INX’s total pipeline grew from $500k to $7m. The pipeline represents all quotes, and should not be confused with revenues booked. Cistera's portion of these solutions quotes is about 10%.

Bullet two refers to a sale to a school district that has not yet been announced. The initial order was just for a Unified Communications phone deployment. The Event Alerting and Notification, Quality Assurance and Compliance and Productivity and Collaboration solutions that Cistera offered led to the current order for close to $3 million -- an increase of almost 100% in the initial order.

If you have trouble opening these emails, let me know and I will send them with the slides removed, and you can just refer to the presentation at the link provided.

Kathy

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From: Lhn54/24/2008 1:00:30 PM
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VoiceCon Attendees See Increased Investment
Posted by Eric Krapf, Editor/Lead Blogger | Apr 23, 2008

Vendors, take heart: If the attendees of VoiceCon Orlando are representative of the large-enterprise market (and they are), these folks don't yet expect the recession to dampen their spending on communications.

In our post-show survey, we asked, "Regarding your organization's investment in Unified Communications, IP Telephony, VoIP, and converged networks in 2008 compared to 2007, do you think your organization's investment will...?" Here are the choices and results:


Increase: 75%

Decrease: 1%

Stay the Same: 24%

I want to remind you of the context in which VoiceCon Orlando happened. On the first day of the show, Monday, March 17, we were all waking up to the news of Bear Stearns' collapse, and at that point, nobody was quite sure how much worse things might get in the financial sector. Now, this post-show survey was conducted earlier this month, so we've had time to digest those seeming portentous events, and things obviously didn't turn out as bleak as they could have. But still, I'd argue that it's impossible to recall the experience of VoiceCon Orlando 2008 without thinking of the recession. Remember that in his Tuesday keynote, Lou D'Ambrosio, CEO of Avaya, made that his central theme, the call to IT people to save the country from the bad times that loomed.

Interestingly, I had a conversation with another vendor exec, Chris Thompson of Cisco, who was much more sure that customers would keep spending.

And when we asked, in our survey, what topics and technologies the respondents were most interested in, they named the core elements: "Unified Communications Systems/Services" (which, admittedly, was left deliberately broad); IP-PBXs; IP phones; enterprise network/communications infrastructure; and, "SIP."

When we asked what products people "plan to buy" as a result of their attendance at VoiceCon, guess which came in first--the only one with more than 50%? IP phones. So much for the death of the desktop phone. "UC Systems/Services" came in second, beating out IP-PBXs, with SIP next, but a good ways behind.

Of course an IP phone could be one of those funky-looking Microsoft-compatible barebones sets, the kind that plugs in via USB and is driven by Office Communicator software on the attached PC. (It could, of course, also be another vendor's variation on the same USB-phone theme.) But I'm not betting on it, at least this year.

But back to that big, fat, encouraging 75% number, the folks who expect to spend more this year than last. Chris Thompson's argument is that in tough economic times, people continue to invest in technologies that can give them a solid return, and that VOIP/IPT is such a technology. Our survey would appear to provide at least one data point in support of that theory.

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From: Lhn54/27/2008 11:44:05 PM
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tools.cisco.com 




First 4 links are new on cisco.com

The very first one is pretty clear to a layperson I think.

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From: Lhn55/2/2008 9:56:11 AM
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From the Yahoo board...


messages.finance.yahoo.com 


All stocks have risk... however the potential here is far greater than most would realize.

At first blush and on paper there's nothing terribly impressive (yet) to point to. Sales are quite modest and inexperienced management has made numerous blunders in the past with late filings and late earnings reports.

Often however, there's more than meets the eye to a story, and this is certainly the case here. We have a company with precious few shares outstanding and even less in the float... even the fully diluted share count numbers are remarkably low for a small company that has been struggling in a market sector that has taken years longer to develop than originally expected.

Usually you would expect to find a company like Cistera, mired in debt and with as many shares outstanding as their are stars in the sky... this is after all the normal outcome for small companies that have to keep printing shares and selling them to keep the doors open.

Instead we sit with only around 8 million shares out, probably less than 300,000 in the float and a fully diluted number less than 20 million when all is said and done. Coupled with incredibly high profit margins (75%+) you have a winning formula for Wall Street's rapid ascent award.

We have a small company with some key infrastructure programs for what has been a slow to develop voip market, that by most estimates will eventually be in the trillions of dollars. Exactly why big players like AT&T and Cisco are already staking out territory. This same small company is an infrastructure play for these big players and in fact Cistera has already forged partnerships and alliances with most of the major players in the space. This holds the potential for staggering growth.

As for the stock itself, one only needs glance at a 2 year chart to see how little volume there is. For those of us watching on a daily basis it often appears the company is the latest stealth program run by Boeing! There are basically no buyers and no sellers. From this one can glean that those in the know (existing shareholders) recognize something special here and aren't selling. You could also surmise that the Cistera story is only known to a select few who already bought the shares they want, hence no new buying... and by "no new buying" I of course mean precious few shares trade hands.

The company should earn nearly $1 per share EPS on just roughly 40 million in revenues, a target that should be reasonable to expect over the next three years. Again the key is the remarkably low share count. This low count will help Cistera arrive at incredible EPS numbers on relatively low revenue numbers. management believes they will eventually reach over 100 million in revenues which should be over $2.50 EPS. Multiply that times whatever PE ratio you imagine they might deserve and the numbers are incredibly intoxicating.

The wait has been longer than most early investors expected, but the signs are now obvious that the voip explosion the experts were expecting nearly two years ago, is finally at hand. The next three Qtrs should show explosive Qtr over Qtr growth and finally capture Wall Street's attention.

Mag

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From: Lhn55/9/2008 10:58:57 PM
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This is a transcript of highlights of a CSCO webcast to partners/resellers compiled by a shareholder.

THIS IS HUGE. You may want to sit down.

-----

So huge that I decided to transcribe much of the first 17 minutes of this Cisco Webcast to its SIP partneres and potential partners which took place on May 8, 2008. The goal of the webcast was to better explain the SIP program to the potential partners, which can get sort of complicated, so as to entice them to apply for SIP approval.

As their primary example of how the SIP program can bring great wins to all involved, ie their very best pitch out of all the deals out there so far, Cisco elected to describe in detail the INX-Cistera deal. Cisco top brass desrcibed Cistera in extremely positive terms and got the Cistera name out there in front of all potential Cisco SIP partners. I could barely believe what I was hearing. It is the type of marketing for Cistera that money could never buy.

Here you go:

This is the CISCO guy (director of operations for US and Canada channels) talking to the SIP partners:

"solution selling is becoming a much more important strategy both for ourselves and for you"

"Going forward in 2009 the vertical strategy is going to take on a much more preelant role both for enterprise and commercial."

We are going to take you from being just another supplier into being a trusted advisor and we are going to help you compete against point product providers.

We believe this is the best way for Cisco to maintain its growth which will be extremely rewarding for both you and Cisco.

There is a whole group of pre-qualified applications for SIP for you to take advantage of to generate increased sales for yourselves [seems all the more impressive that Cisco has decided to highlight Cistera out of this group].

Director of WW channel

This fiscal year we have added a new way to enter the SIP program by making it much more easy for you to develop your business solution (ISPN program). Specifically we have done due diligence on a portfolio of applications across a number of industry verticals. So when you decide to team up with one of these pre-qualified parterns to take a solution to market, you are collaberating with a partner that has already acknowledged that it is prepared to help Cisco's channel partners sell solutions. So they are making it very, very easy for you.

These changes are helping to dispel the myth of how complicated SIP is (before the partners had to do all of the leg work themselves).

Once approved for SIP you are dealing more flexible portion of customer budgets because you have significantly moved up in their value stack.

How you get started with SIP is first deciding which solution you wish to take to market.

Once a partner is qualified, then approved SIP soulutions will receive a 54% discount on all Cisco products.

You are probably wondering which applications are pre-qualified of use in SIP. We will be covering them in great detail today.

Mike Kerr, MCO US channels, GovEd, Retail, CRE, S&E:

Let's talk about the applications that are available for use in SIP.

Here is what we think you should know about the opportunities at hand.
- First I would like to talk about our roles in vertical channels
- Then I would like to review with you an example of a great win with one of our pre-qualified technologiy partners, CISTERA NETWORKS.

"I really think that if you hear this story, you will then want to understand how you can select a pre-qualified SIP technology partner offering, build your go-to-market plan, and in just months turn that initiative into increased profitability and differentiation in both your current and prospective customer accounts."

12:50 minute mark in the presentation is where they tell the CISTERA STORY

Lets talk about this big win with INX and Cistera:

"Cistera Networks provides us the ideal example of the value a technology developer can provide when leveraging the solution incentive program. They have the complete business model necessary for your unified communications practice to leverage, and thereby creating a true business-needs based solution for the customer. Cistera is indeed market ready for you to engage, and that is really important for ease of doing business. They have the ultimate customer ownership as defined. They have Day 2 support identified and defined. They have solution training and education for your apprpriate account managers and SE's. They have a product distribution channel out there and fully developed. They have competitive product as well as market opportunity G2. And one of the greatest things, they have their own channel partner relationship manager for you to work with. All of this is really to accomplish the goal of making the relationship between Cistera and YOU uncomplicated, and more important, beneficial."

Let's look at this pre-qualified SIP solution in action:

A great win took place for INX at Hillsborough Schools in Oregon. They had been working this opportunity of almost two years. It was first identified as a $! million voice opportunity. Over the process of the relationship that grew to a $2.5 million unified applications deal that just closed.

Here are some of the specifics:
- 2,500 phones
- in 35 sites
- multiple applications (including Cistera's Broadcast Paging, Call Notification and Monitoring, and Emergency Response and Control.

"Not to mention that INX and Cistera were able to fend off Microsoft in the eleventh hour, thanks in great part to this partnership, and the fact that these applications brought forward customer-based solutions that Microsoft could not address. Definitely a great win."

The first phase of this implementation will be live in mid-May. And also, a unique part, INX is working on a second phase which actually includes more applications. Specifically an application with School Messenger, who incidentally also is another pre-approved SIP solutions provider, as well as some access control and even video surveillance. So the deal is truly growing and continuing to develop over time.

Currently INX had developed in excess of a $60 million pipeline for this year in the GovEd space by leveraging things such as this Cistera pre-qualified SIP solution.

Now I would like to pass it over to Roman for some more examples..........



-----

25:30 minute mark ….more on Cistera:

Some of our partners have actually taken it to the next level. For example, Cistera Networks has even created a boilerplate template where they have already done about 90% of the SIP go to market plan for you, making it really easy for you to fill in the blanks. We are seeing this as a trend, that more and more applications providers are moving toward to help expedite your go to market.

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From: Lhn55/16/2008 12:45:19 AM
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From Yahoo message board


We are just a few weeks from the 3/31 10K earnings report (maybe up to 6 if they go all the way to the June 30th filing deadline); then the 6/30 10Q earnings report must be out by Aug 15th. So we will get two reports quite close together. If the news is good and the market learns that CNWT has no cash crunch as is starting to ramp revenues into the $2-4 million per quarter range the of course the stock will take off. It might even double (at least from the current level of 70 cents).

No one knows if this type of good revenue news is on the horizon, but there sure seems to be a lot of optimism swirling around the company:

- They have moved to a larger facility to accommodate growth
- They have hired a new cfo and marketing people
- They are training more outside engineers than ever to learn how to install their product.
- Cisco is highlighting Cistera as a major success story in their new Solutions Incentive Program (SIP) which has just undergone a major relaunch as Cisco believes the market is primed for substantial growth starting now and really hitting in 2009. The highlighting of Cistera by Cisco greatly enhances Cistera's reputation. Of course it is still up to the company to execute and maintain their reputation.
- The company has released information indicating that the pipeline of applications by partners for the approval to sell Cistera installations is growing rapidly, hitting over $3 million in the current quarter (partners must apply to and be approved by Cisco to be eligible for the SIP program, this guarantess all customers that they are dealing with only the most secure and reputible sellers)
- Hosted revenues through Sylantro have not yet begun to roll in (or are just starting now, but not reflected in any of the earnings reports filed to date). Cistera believes that Sylantro revenues could dwarf the Cisco revenues.

To me all of this optimism is not pie in the sky, but very achievable. Of course the company must execute and not over-promise, but the road map to get them there is clear. If we see revenues of close to $2 million in the June quarter (to be reported in August), then of course the stock will soar. In other words, the near term upside is massive. With the stock price down to 70 cents a share (and the bid down to 69 cents), the risk reward ratio here looks more attractive than ever.

Something has to give, and I wonder if we are bottoming. I have added a bit to my substantial position, and am ready to take whatever ride follows. I believe that eventually the optimism outlined above will seep in to the marketplace and move the stock substantially higher.

For now, though, the market is skeptical. That sort of negative sentiment, however, can change rapidly, and on no news.

I would love to hear from whoever is selling here at 70 cents. My guess is that the bear story goes something like this:

The company has a lot of promise but no cash and no earnings. They are going to have to add substantial expenses ahead of revenue in order to pave the way for sustainable growth. In order to do this they will have to take on massive dilution. Additionally, there are hundreds of software companies out there who believe they are on the edge of gaining access to a huge market and huge revenues. The vast majority of these companies fail. When Cistera can demonstrate that its ability to generate substantial revenues is more than just a goal, then the skeptics will take notice and flood in. But until they they remain skeptics.

I think the company needs to address this concern in the next earnings report.

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From: Lhn55/28/2008 10:09:50 PM
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linuxworld.com 


CTO Strategies: Greg Royal of Cistera Networks

By Jim Romeo, LinuxWorld.com, 05/28/08

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Cistera Networks helps tie business applications and phone systems together. Company CTO Greg Royal explains how the company looks for scalability, integration, and agility, through measures such as minimizing the desktop software load, and Which open source software he finds useful.
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Greg Royal founded Cistera Networks six years ago to provide a convergence server platform that connects a company's enterprise applications to telephone users, using voice over IP. Greg continues at Cistera as CTO and EVP, and writes a blog We spoke to Greg to discuss his company and its embrace of Linux in his industry.

Can you tell us a bit about your business and how you embrace Linux?

Cistera Networks is a software development company based in Dallas. We build enterprise application platforms for IP Communications, specifically Cisco Call Manager and Sylantro Hosted Platforms. As with most enterprise IP PBX platforms, we make extensive use of Linux in our products. It is an extremely robust and scalable platform to deliver an application appliance strategy.

Linux forms the basis of our enterprise IT strategy along with a comprehensive Cisco network infrastructure. Linux came about five years ago as a necessity, and has subsequently turned into a strategy for us.

In the early days, Red Hat Linux was used to provide Web site capabilities, as well as email, file and print services for a small number of client machines The Internet provided us with a remarkable amount of support for the various challenges we had in building out a cost-effective infrastructure as well as with the flexibility to try different service offerings and capabilities. These included CMS systems from Joomla, Zope, and a trouble ticket system, RT. Other systems included CVS code repositories and Antfarm build management.

As our company grew larger, it was necessary that we move toward more robust commercial offerings However, we did not want to lose the flexibility that moving to a closed proprietary system would require.
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Continued at above link

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From: Lhn55/29/2008 11:22:59 AM
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Aastra is one of Cistera's important partners. This is from the No Jitter blog...links below





Aastra’s Novel Approach to R&D
Posted by Brian Riggs, Current Analysis | May 23, 2008

I’ve been spending a little time coming up to speed with Aastra lately. You may recall that the company just closed on its acquisition of Ericsson’s enterprise business. It was the latest in a string of M&A activity that brought DeTeWe, the PBX businesses of Ascom and EADS, and some of Nortel’s European operations into the fold. Also in the mix is Intecom, the PBX developer that continues to market itself as Aastra Intecom; Intecom had been acquired by EADS and was part of its PBX division.

The result of Aastra’s acquisition strategy is a much larger market presence, particularly in Europe where the various acquisitions have given the company sizable bases of customers in Germany, France, Switzerland, Benelux and Scandinavia. Not bad for a company that a few years ago had little presence outside its native Canada.

Like any other company growing through a string of acquisitions, Aastra has a jumble of PBX products, communications apps, and end points to deal with. The company is dealing with this by not making too many product line changes too quickly. Rather it will continue selling distinct communications systems in the various regions where it competes and gradually migrate them to a common communications platform.

In the meantime, Aastra has turned each of the R&D facilities of its various acquired companies into technology specialists. Large enterprise systems development is the purview of the former Matra group in France, while erstwhile Ascom in Switzerland focuses on SMB systems. Wireless is the particular charism of Germany’s DeTeWe facility, SIP end stations and user interfaces occupy the time of the former EADS in North America, while comms applications are on the plate in Belgium. As Aastra R&D SVP Hugh Scholaert explains it, products and technology developed in one group are made available for use by the others. So as the one-time DeTeWe group enhances the DECT handsets previously sold with DeTeWe PBXs, other Aastra business groups can adopt them as well. This was in fact how the Aastra 5000 was developed, by drawing on resources of all its R&D facilities to build a single solution.

All in all it’s an interesting approach from a company that’s quickly increasing its visibility, market reach and product lines in the enterprise communications space.


++++++++++++++
This issue of No Jitter Weekly is sponsored by VoiceCon Webinars:
"Demonstrating UC Productivity Benefits," Wednesday, June 4, 2 p.m. EDT/11 a.m. PDT, sponsored by Genesys Telecommunications Labs.

Though the buzz around UC continues to grow at an unbelievable pace, the effort to identify and even quantify its benefits has been daunting. Over the past 2 months, noted UC industry analysts Blair Pleasant and Nancy Jamison have taken to the streets to find real-life UC end users from various disciplines within Enterprise Business organizations around the globe. They conducted a formulaic survey interviewing a variety of end users, examining how they use UC in their daily work flow, and how UC has made an impact. Hear what they found out.

To register:
++++++++++++++


Editor's Note

This week on No Jitter, we posted a new feature (written by me) on the difficult problem of interoperability in IP telephony and Unified Communications. By looking at three specific issues under the general rubric of interoperability, we show just how hard it's going to be to reach the point that all the vendors say we'll attain, where enterprises can deploy the elements of IPT and UC in a best-of-breed, vendor-agnostic way.

And in case you haven't read it yet, remember to check out Allan Sulkin's review of the VoiceCon Real-Life RFP, also in our right-hand Features column.

On the blog side, John Bartlett looks at the factors that make real-time traffic different, Brian Riggs looks at how Aastra is trying to make itself different from other vendors, and Michael Finneran reports on Cisco's major announcement of a new wireless LAN strategy and architecture. And there's plenty more besides these.

I hope you'll take a look at all our posts and let me know what you think.

--Eric Krapf
No Jitter Editor & Lead Blogger
ekrapf@techweb.com






The first article is wonderfully comprehensive but uses significant terminology beyond my comprehension.


1.) Interoperability in IP Telephony and Unified Communications
Given the title, this could have been a very short article. But we dug a little deeper to explain just why interoperability will be such a difficult nut to crack.

2.) VoiceCon's Annual IP Telephony System RFP Workshop
In case you haven't read it yet, don't miss Allan Sulkin's summary of the responses to the VoiceCon Real-World RFP for an IP telephony system. New and improved this year, with 100% more Unified Communications!
Part 1:
Part 2:

3.) Do the Cisco Motion with Me
A few weeks back, Michael Finneran asked, "Is Cisco Falling Behind in FMC?"
Now, as if on cue, we get the answer: A big initiative from the big vendor to tie the elements and applications of the WLAN together.

4.) Vive La Real-Time Difference
John Bartlett reports that "Real-Time Traffic Is Different." Then he explains how it's different, and what that means for your network.

5.) Aastra's Novel Approach to R&D
Brian Riggs reports that the Canadian vendor has grown by acquiring diverse companies, and now has taken a unique approach to leveraging the technologies that the acquisitions brought to the table.

6.) Is Your IT Organization Ready for Unified Communications?
Not surprisingly, most people say no. So should you be worried (yet)?

7.)The Ceiling is Rising
Matt Brunk says we should raise our expectations, not lower them, as we migrate from TDM to IP. But is that what's really happening?

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From: Lhn56/8/2008 3:42:11 PM
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ragingbull.quote.com 


Cistera was mentioned in a Tobin Smith email alert...someone posted the entire email at the link above.

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