Thanks all for the replies and thoughts,
It's funny though that every reply seemed to be most concerned with the trading of the stock price and the stop loss limit, and not what I thought was the more insightful message... concerning gross margins and book to bill.
The number to watch in the report, however, is gross margin -- Wall Street will be disappointed if the company invests too much in sales, and research and development -- and the book-to-bill ratio. This has historically been a soft period for orders at Network Appliance, and a book-to-bill below 1 (which would mean the company is booking fewer new orders and billing more old orders) is possible.
Any thoughts would be greatly appreciated.
FWIW I won't be using any stops because I don't even own the stock yet, I'm only still studying it, and finding more and more that I do want to own it, but am always cautious buying before earnings for a LTBH... especially in light of the fundamental issue Jubak raises. These are the type of stocks I like to buy on general market corrections. I think this company will be a great one for the future.
Thanks to all for the good posts, and thought provoking information.
Best Regards,
John Madarasz |
