I based 50 or so on a multiple that was half what it was at 100, so around 3.6 times 5 yr % growth rate. At 50 NTAP would have a PE of 170 or so. Long ago, the norm was 1 to 1 PE to growth rate, I feel NTAP deserves much better then that given the size of the potential market NTAP will address. When you look at a stock like NTAP with an outsize valuation like it has, it doesn't take much for the market to adjust that valuation lower, as you just seen. I still feel the market has more work to go on the downside, I said months ago 2800 that happen, now I believe 2600 could happen in flash, with 2200 to wipe out all of 99 as rock bottom, I will be amazed if that happens, I don't give 2200 much of chance. I'm a firm believer that stocks and markets move back to the normal trend line. The naz is way above that still and so is NTAP. When you get right down to it, Mr. Market will decide. I'm waiting, letting it come to me, or at least base some to show the selling is done both the market and NTAP. I have to eat, sorry if this seems rushed.
Greg |
