not sure how your comparing CMTN or NTAP?
Regardless heres an article on NTAP you may find useful
A Victory Lap for Our Views on Network Appliance
By Dennis McKechnie, Portfolio Manager, PIMCO Innovation and Global Innovation Funds
02.01.01
Over the past eight weeks, we have become very negative on Network Appliance, a storage company. Although the need for storage continues to grow, our concerns were company-specific. Our rationale for this opinion was that the company’s exposure to ‘dot.coms’ and new telecommunications carriers was too high (approximately 30 to 40% of its customer base), and its sales would suffer as these customers came under increasing pressure.
Our view, unpopular several weeks ago, is finally gaining some support from analysts. CS First Boston downgraded its rating on Network Appliance from buy to hold this week, and Lehman Brothers also registered some concerns about the stock because of its significant exposure to ‘dot.com’ and telco carrier companies. This helped push the stock down to a 52-week low.
We believe this case illustrates the virtues of our investment process. Because we use a top-down, thematic approach to investing, and require that our holdings continue to have positive catalysts that could propel their stock prices higher, we were able to recognize problems facing Network Appliance before most others -- focused primarily on earnings reports -- were able to. That’s because we've always believed that the companies themselves control only about 30% of their destiny. While many investors disregard the other 70%, we choose to integrate it into our research process. We will continue to employ this focus in our management of the portfolios. |
