CNBC is "dolt central"
All they do is stimulate momentum. NTAP likely has some further risk downward. But its solid support, in my opinion, is represented by the "double bottom" in the high 40's. When the stock loses it's downward momentum, I'm buying NTAP for the first time and marking it on my calendar.
This is a great company. Solid triple digits this year (JMHO). Who can argue with that kind of return in this market? Frankly, I even expect NTAP to exceed its high of 152 3/4 this year.
I've wanted into NTAP for quite some time. Its behavior has been strange largely because of the way the "Houses" have targeted the sectors in rotation. They're finding it increasingly difficult to target "storage." Look at EMC's guidance. We're slowly getting back to tolerance of high PE ratios, particularly in sectors that will fuel the new economy. Greenspan's war on the "Naz" is drawing to a close as the "Fed" loosens. This year is "guns away" in legitimate tech sectors such as storage.
I look for the followly "unmatured" companies to lead the way this year, despite high PE ratios: NTAP, SEBL, BRCD, JNPR, CIEN, and BRCM. The biggest winners this year are going to be people who recognize companies with high PE ratios that are meritorious.
BWDIK, john |
