If that is a major contributing factor in the drop, and if one believes that EMC won't cut into NTAP's share all that much, then one should be encouraged--because Mr. Market will be proved wrong and NTAP will recover.
Oh, one should be more than encouraged -- one should be buying the stock (and perhaps calls) up to the gills, to arbitrage the discrepancy between market price and true price. But we all know Keynes's warnings, the first about markets staying irrational, the second about the long run. It's usually very unwise to try to be a hero, in life, and in the stock market.
As for me, during precipitous drops in NTAP, I have tended to buy 100 shares every morning, like taking a vitamin -- stopped that habit after the precipitous drop didn't stop. But bought a bit more Friday at the open. NTAP has been beaten down more than the other blue-chip high-valuation tech stocks. While that doesn't prove or predict anything, it does hint at a smidgeon of "relative value"... Too bad my IRA is almost 100% NTAP (don't yell at me; I'm young, and bought my NTAP on the cheap in April), or I would've done some portfolio rebalancing in that account. |
