<< and QLGC seems overvalued compared to peers>>
It's all relative, though. QLGC continues to make money, and their forward PE makes them seem undervalued compared to their peers. Their business is the broadest based, so slowdowns in SANS hurt them less. Mind you, the SAN plays are all overvalued compared to historical metrics, so by rights you should do very well. Also, QLGC broke right through its 200 dma today without even a pause, and, while it recovered nicely, I don't know that that breakdown was a real sign of strength <g>. The sector has seen a fair number of warnings and estimate cuts already, but QLGC, EMLX, and BRCD (the big three SAN plays) haven't warned. If one of them warns, that short will fly. (I would be very surprised if QLGC did warn, actually, as they're amazingly conservative in general.)
Anyway, it's all relative, the freep types as the naz and QLGC tics lower and lower and lower. |
