ANALysts wrong again NTAP doing better than BRCD and MCDATA, even Saloman admits that NTAP earnings will at least double next year, bigcharts.marketwatch.com
Brocade is down more, and has a higher P/E ratio, which means it is not catching up, but falling behind and at $30 or so is way overpriced compared to NTAP, and since BRCD does the more expensive SAN just like EMC the leader in SAN who do you think will win that one, as budget squeazes on purchasing is really an undeclared PRICE WAR of sorts, not BRCD, not even EMC in the long run since NTAP's NAS type storage is cheaper.
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In short, do not be fooled by ANALysts who are probably looking to dump their 6 month holding stock inventory in new IPO class shares of new companies or of MCDATA or are desperate to unooad BRCD, which now 2 days since the ANALysts trying to poor cold water on NTAP's good earnings report and GREAT VISIBILITY interviews and conference call where NTAP's Warmenhoven says that deferred and postponed customer orders are now WINS and not lost orders, but confirmed orders seeing "STRENGTH IN JULY" and that they have reached the BOTTOM and his final forward looking statement that STORAGE WILL LEAD THE TECHS in the recovery.
I say, look at the numbers closely, the past historical charts, and the TIMING OF ANALysts manipulative downgrades or upggrades that appear to be self serving dumping of pet stocks against the threat of the true leaders like NTAP, the potential for returning to $152 or higher is there for NTAP, above $104 even I will admit for EMC, I do not see with comparative Price to Earnings P/E ratios or EPS Growth rates that any of the other storage companies can come close. They may be aquisition targets by the other 2 if consolidation means merger, but it is possible that they will just lose more customers, and go bust, whereas NTAP AND EMC can out last any loss or attritions of any undeclared PRICE WAR and survive the competition. STORAGE IS A NECESSITY and companies can throw out some, but not all, old data. They need the new customer data to compete, to data mine their customer orders and information and get the business and keep the business and network storage at 25% the cost of doing it themselves is why NTAP will survive and thrive.
PREDICTION: WATCH TRIPLE WITCHING FRIDAY and if you don't buy NTAP by then, you will wish you had on August 21st when the Federal Reserve's FOMC Meeting lowers interest rates and makes a surprising unprecedented forward looking guidance statement, imho, that is why I buy.
I am,
Truly your$,
-Crystal Ball |
