DS: Did you "understand your thinking", or did you mean "you're" thinking.
Trading ranges have naught to do with growth, the proof of which is that stock prices don't move in straight lines, and that a company (stock) growing eps at 47% (EMC) can outperform another growing eps at 69.8% (NTAP) 39% to 16% YTD. Don't you just hate it when that happens?
Here you have two companies selling for about half a hundred, one of which is 12 to 13 X the other in total revenue, the larger of which grows annually in revenues more than the other totals, has nearly 8X the number of shares (so contributing to price stability on bad days like this one), held by 8X as many institutions, and whose eps is twice the smaller, and produces more income per employee by one-half, even though both are well run.
That's what I'm thinking, or at least part of what I'm thinking.
BTW, (Hal and others) does Network Storage, Inc. strike you as harking back to the "service bureau" model which nobody uses anymore? That's a troubling thought, then again, maybe not since they're not public anyway. You just watch, EMC is going to commiditize the lower end where these guys hope to prosper. Short timers, I think. This logic comes right smack dab out of "Inside the Tornado"...incredible book.
ATT, I've got lots of dry powder. My overall feeling is that the market won't climb this wall of worry. Not this time. We may see some good days, but overall, until mid-Autumn, I'm thinking there are going to be some real bargains heading into winter. |
