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Technology Stocks : Network Appliance
NTAP 117.51+1.3%1:13 PM EST

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To: DownSouth who wrote (3049)4/8/2000 9:14:00 PM
From: KevRupert  Read Replies (2) of 10934
 
DownSouth,

I agree that NTAP is an excellent company with great growth prospects. Assuming that one is a buy/hold investor, than of course the investor would hold this stock.

Is a stock ever overpriced? I would argue that great companies can have overvalued stock prices.

I believe that the analysts are giving full Professor Christensen "discontinuous innovation" value to NTAP. A company that grows at 75% is overvalued if it trades at 200x earnings. The risk reward is imply not in balance. Although I like the great growth stocks, I believe they are not great buys at any price. Any earnings disappointment puts the investor at great risk, much more at risk than than the average stock. Having said that, I'm holding what I have in NTAP!

Just my opinion,

Respectfully, advalorem
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