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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Normandi who wrote (4030)	8/15/2000 1:11:01 PM
From: H.A.M.	Read Replies (1) \| Respond to of 10934

Robertson Stephens Daily Growth Stock Update SAN FRANCISCO, Aug. 15 /PRNewswire/ Estimate Change: Network Appliance (Nasdaq: NTAP) 2001 EPS: $0.40 from $0.34 2002 EPS: $0.57 from $0.48 Strong Buy Dane Lewis, Network Storage Systems and Software "Network Appliance reported strong 2001 first quarter results, with revenues and earnings exceeding our estimates," said Lewis. "Gross margins improved to 61.3 percent, versus 59.8 percent last quarter, driven by an increase in software sales, reduced component costs and higher service margins resulting from the company's substantial investment in customer service. We are adjusting our estimates due to Network Appliance's strong quarterly results. We reiterate our Strong Buy rating."

To: Normandi who wrote (4030)	8/15/2000 1:52:44 PM
From: FiloF	Read Replies (2) \| Respond to of 10934

IMO it is general market conditions rather than a specific NTAP issue that have caused this sell-off. The market wants awesome news and even when great earnings are announced, stocks are punished while some people try to find dark clouds in the silver lining (and if they cannot find them, they make things up!). I guess the rich valuations also bring with them unrealistic expectations. I compare the reaction here to what happened with AMAT. The major difference is that there is a debate regarding the continued growth of AMAT's industry (some talk of a cycle end), whereas there is no doubt that NTAP's industry (storage) will continue to grow at a phenomenal clip. This makes the NTAP sell-off even more illogical. In the long run (and probably in the short run, assuming no market meltdown), NTAP will be cruising. A buying opportunity for those that can afford it (and can stomach the volatility that others on this thread have been pointing out). Cheers.

To: Normandi who wrote (4030)	8/15/2000 9:13:58 PM
From: kas1	Read Replies (1) \| Respond to of 10934

I too am a little disappointed how the street treated a great quarter. Were you planning on liquidating your position this quarter? If so, then as a fellow human being, I feel bad about what happened to you, but as a student of the markets, I know that strong downdrafts after an earnings release are the norm with tech stocks. (in fact, didn't NTAP's big fall, from 120 to 45, start right after their march earnings release?) I also know that volatility is, as James Joyce says about something else, "inevitable but impredictable." If you were not planning on liquidating your position this quarter, then the stock is a victim of a temporarily inefficient information mechanism, working in your favor. Imagine, if you will, that your local Lexus dealer mistakenly thinks that the Lexus in the showroom that you have your eye on is a Kia -- would you complain that the dealer misunderstands the Lexus, or would you grin, pretend to agree that it's a Kia, and buy all you can? I am not a proponent of blindly and automatically buying the dip. That can be suicidal. But some of my best long-term positions were established by stepping up when short-term negative sentiment started circulating about a good long-term tech stock. As always, YMMV.