NTAP which I own is not EMC or SUNW and should shake the symathy downgrade and price downturn.
This is against my better judgment, but I'll bite. Why is NTAP better than EMC? Because you own it? I haven't looked at these companies real closely in a while (because they are so ridiculously expensive), but based on standard metrics, EMC looks to be less expensive than NTAP. PE is 37.8 vs 90.5, and P/CF is 28.7 vs. 79.2. NTAP is a little lower than EMC on Price/Sales (6.79 vs. 7.42) but EMC's profit margins blow away NTAP, which entitles them to a higher Price/Sales ratio.
If the whole sector is going over a cliff, what's going to save NTAP? And if it isn't, what makes NTAP a better investment than EMC, given that by most measures EMC is cheaper, and historically EMC has been a much better company? Do you own it because of a religious belief in NTAP's new standard, at a time when CEO's are reluctant to sign off on a new anything? Maybe it'll work out, but it doesn't seem like a good bet to me.
BTW, I don't disagree with your characterization of the analyst call. That's one reason it was great that CNBC had her on. They were able to put her feet to the fire and ask, among other things, what EMC was doing on her firm's recommended list given the rapidly deteriorating outlook. |
