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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: chaz who wrote (9356)	11/1/1999 6:26:00 PM
From: DownSouth	Respond to of 54805

chaz, "would anyone disagree that NTAP will have been a better investment". That's a tough one, but its the kind of problem you like, because EMC and NTAP are, imo very good investments. Their price charts track one another and have for a while. techstocks.com EMC is promising an NAS solution, but many believe that promise is a year from fulfillment, making it appear as FUD. NTAP's storage capacity is expanding rapidly as they implement sophisticated, high availability clustered configurations over fibre channel. Thus NTAP's capacity is intersecting with EMC. My industry contacts say that NTAP's price/GB is substantially lower than EMC, though this is certainly not the only competitive metric. EMC's new software initiatives for storage management are very forward thinking and fit the SAN model well. What is interesting, and NTAP plays this card, is that NTAP filers can attach to the back end of SAN networks to serve as storage "devices" in a SAN network. My money is in NTAP right now and not EMC. I pulled out of EMC when the DGN purchase was made. (I put the money in the COMM-IC basket of PMCS, JDSU, CNXT.) If I had more cash, I would probably take a position in EMC "at the market". Here are some financials that I just gleaned from numerous sources for a comparison. EMC NTAP Rev last year($MM) $ 3,974 $ 289 Market Cap ($MM) $ 72,689 $ 4,989 Price/Sales 18.3x 17.2x Profit Margin 20.0% 12.3% Return on Equity 27.5% 12.8% Sales/Employee $409.66 $438.51 Debt to Equity 0.1% 0.0% Return on Assets 17.4% 10.3% Gross Margin 55.8% 59% Revenue Growth rate 36% 80%