Network Appliance Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance

NTAP 117.26

+1.1%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jacob Snyder who wrote (9111)	9/10/2001 8:17:57 PM
From: David W. Taylor	Read Replies (1) of 10934

My $3,000 loaf was meant to be an exaggeration but not unduly so. Given the negative earnings of your recent gambles, I would have to say you paid too much. Specifically on NTAP with a current P/E of 53.10, you probably paid 4 times too much. Traditional rules of thumb say that investors should expect to pay 15 times earnings for a share over the long term. Given the extra volatility right now, it could be argued that 10 times earnings is a better bet. NTAP does actually have earnings and so there is theoretically a chance for such a stock. Ten times earnings would give you a price of around $2.10. Oh, and yes, I am firmly on the sidelines. The multiple for entire market is similarly out of step. I'm looking for another 50% drop in the major averages before I could get excited again.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next