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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: BDR who wrote (25249)5/24/2000 1:11:00 AM
From: BDR  Read Replies (1) of 54805
 
lightreading.com
SAN Surprise Jolts Market
The Boat Rocks Yet Again

A startup popped out of hiding Monday with a surprise challenge that rattled the market for
storage-area networks (SANs).

Nishan Systems Inc. nishansystems.com emerged from stealth mode to claim it is
readying technology called storage over Internet Protocol (SoIP) that will allow SANs to run over
native IP connections, without tunneling or encapsulation. If it pans out, Nishan's technique could
streamline the implementation of SANs, opening up opportunities for carriers seeking to offer
backup services to business customers.

The news didn't help the price of SAN stocks. The first effects occurred when Ashok Kumar, an
analyst with U.S. Bancorp Piper Jaffray Inc. piperjaffray.com, changed his
recommendation on Brocade Communications Inc. (http://www.brocade.com, Nasdaq: BRCD),
the market leader in SAN gear, from "buy" to "neutral," citing the Nishan announcement as a hot
alternative to fibre channel SANs. Brocade stock dropped a few points quickly as trading opened
Monday--only to recoup later on.
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