The data storage theory
The thinking: Storage hardware and software stocks such as EMC Corp. (EMC, news, msgs) and Veritas Software (VRTS, news, msgs) will do well as businesses rush to get better storage systems in place. Don’t bet on this one. The reason: Overall technology and capital spending budgets are weak. And like everyone else, these companies lost lots of business in September. So storage companies will probably continue to suffer along with most of the rest of tech.
“I think you’re going to see a modest up tick, and then maybe what it does is save these guys from having to tank as much as everything else in the next month or two,” says John LaForge, an analyst with Phoenix Investment Partners based in Florida. LaForge, however, still likes the longer-term outlook for storage stocks |
