wsk,
i read the cantor stern report. thanks for the link. the report goes on about ntap being too richly valued, yet offers no comparative guideline for valuation; using the cantor stern method, a stock like cisco is tremendously overvalued now, and was tremendously overvalued 5 years ago as well (since which time it has made a gazillion percent return for patient investors). these guys keep citing "potential for economic downturn" as a reason not to invest in ntap, but unless there's something i missed, that is a market-wide risk, not something specific to ntap.
btw, ntap's product is classic capital equipment infrastructure: the fed rate cuts (and, one hopes, coming prime rate cuts at commerical banks) bode well. combine that with growing awareness of "world wide wait," and ntap's boxes should be selling pretty well.
the only worry i have about ntap is that it gradually becomes more of a commodity storage product, a la seagate or western digital. but let's hope that this happens far in the future, if at all.
best of luck. |
