Value Line, pg. 4988 (3/31/2000):
"...But the stratospheric P/E ratio is hard to validate, and prudent investors must question its sustainability". Noah Goldner - in the weekly stock review. (Please read entire article for all of Noah's comments and concerns.)
1999E eps .21
2000E eps .40
2001E eps .70
I have cut back my exposure to NTAP due to the high multiple. The company is dynamic and a leader in the NAS market. But the stock is trading at a 200x P/E multiple to 2000 estimated earnings, and 114x P/E multiple to 2001 estimated earnings.
Per Noah: EMC, HWP, SUNW aren't a major NAS factor, but are growing in importance. This increased competition, along with any spring/summer tech selloff, increasing interest rates, and continued excessive P/E multiple on NTAP make it difficult to hold in any large part of one's portfolio.
These comments only apply to investors concerned about stock valuation, and not necessarily to long-term investors. Good luck.
Just my opinion,
Respectfully, advalorem |
