CSCO Upgrade good for PALM, great for NTAP. An upgrade means faster networks, the faster networks that CSCO is getting improved orders for per the UBS Warburg upgrade today are all part of the 3G wireless infrastructure build out of networks that is in full deployment, the benefactor of this upgraded networks will be pda that go wireless and that means with 85% of the marketshare PALM. The immediate benefit as each upgraded CSCO router and switch and network is made, is storage like NTAP right now, since each upgrade increases the METCALF's LAW of exponetial supply and demand and price as it boosts CRITICAL MASS more users, more data, MORE STORAGE. NTAP benefits immediately, and companies like PALM further doen the foodchain benefit ultimately. THIS IS THE SIGNAL FOR THE ECONOMIC RECOVERY AND THUS MARKET RECOVERY and UBS Warburg has called this sinal bythe upgrade today of CSCO, this will bear out within 2-3 days, and then historically, like when I called the April BOTTOM, this will be seen as the start of increase MOMENTUM and the CLIMB UP AND OUT of a V-SHAPED RECOVERY. The Markets will recover, OPEC meeting August 6th may slow the recovery, but it is in OPEC's best interest to let oil prices go lower ($20-$25 is a sustainable and fair price, not over $30 per barrel oil) during these troubled economic times. Upon the recovery the world markets and world economic leaders (public and corporate) will take various measures to prevent the likes of Greenspan from ever destroying an economic expansion ever again. We may see the rise of corporate paper replacing the mere script paper money of nations. Now that's a market!!!
Until then, I look at the UBS Warburg upgrade of CSCO and although CSCO is now up and more or less fairly priced already being higher, this is THE SIGNAL that the rest of the TECH economy is about to recover especially storage and so forth....as networks upgrade with faster and better CSCO routers, they will be able to send more information and data to more places on the internet and their networks quicker, MORE means MORE STORAGE which is good for companies like NTAP which will then be the next to recover, then servers, and database and software and so forth down the food chain.
I am,
Truly your$,
-Crystal Ball |
