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Technology Stocks : Network Appliance

NTAP 117.53

+0.2%

Dec 8 3:59 PM EST

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To: JakeStraw who wrote (8865)	8/3/2001 11:36:42 PM
From: Jacob Snyder	of 10934

re: Analyst Bill Shope said the company will be hit by either lower margins or smaller market share Sounds like the analyst herd is thinking storage is becoming a commodity (= always making tradeoffs between margins and market share). If that becomes the consensus, and that message gets repeated to investors often enough, then the worst possible scenario will be priced in. That is, everyone will believe that, when demand returns, the storage companies will show sales growth.....but little earnings growth....EMC and NTAP will never again see 60% gross margins. They could be right, but storage hasn't been a commodity for the last 10 years, so why should that change now?

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