"How on earth did you draw this sweeping conclusion of the new EMC Chameleon product when it has been released less than 24 hours? As a long time EMC'er (and yes, holder of NTAP as well) I challenge your statement (even if it is some sort of pig English…) What facts do you have to back up your statement that the new EMC product is "not all the (??) formidable"? "
(ps- what's 'pig English'?)
Dow Jones Newswires
Network Appliance Up 30% As EMC's News Lacks
Punch
Dow Jones Newswires
By Donna Fuscaldo
Of DOW JONES NEWSWIRES
NEW YORK -- Shares of Network Appliance Inc. (NTAP) climbed 41% Tuesday on what
analysts are calling a relief rally following EMC Corp.'s (EMC) rollout of its first network attached
storage, or NAS, product.
Network Appliance's stock had been severely punished in recent weeks amid fears that storage
giant EMC would unveil a NAS product that was radically cheaper than Network Appliance's
offering. The stock traded at a high of $152.75 Oct. 20 but closed Monday at $57.88.
In addition to the stock market reacting to Fed Chairman Alan Greenspan and the perception that
the election is moving closer to a decision, Network Appliance is up on the EMC announcement,
said James Poyner, an analyst at C.E. Unterberg Towbin. EMC's announcement had been
weighing on Network Appliance's stock price because investors feared EMC would come out with
a product that was priced aggressively and was also accompanied by a robust software offering, he
said.
However, investors realized that EMC's product wasn't priced that aggressively and that the initial
software offering was "relatively minimal," said Poyner. "NTAP is not going to have to go out there
and rearrange its price list," noted the analyst. "They certainly have at least today a better software
story to tell in the mid-range."
Shares of Network Appliance ended up $23.69 at $81.56, on volume of over 20 million shares.
Average daily volume is about 9 million shares.
Officials at the Santa Clara, Calif., storage company weren't immediately available for comment. |
