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To: assetlogic who wrote (1932)	10/5/2000 5:57:13 PM
From: Wizard	Read Replies (2) \| Respond to of 57684

>>What are your thoughts about CFLO? Do you think there is much validity to pricing pressures from NTAP? CFLO is proving to be quite a volatile stock. $150 to $40 to $150 and back to $108 today. I am letting the stock do whatever it wants. I believe CFLO is going to become an important company someday and investors will appreciate this with a significantly higher stock price. The facts are that these guys are focused on taking the caching appliance market and they are doing it. NTAP has been talking about their caching products since early 1999 and can't even grow sequentially. The facts are that CFLO has a better product and its competitively priced. NTAP can give their product away and its not going to stop CFLO from growing - the market is extremely fertile for companies that enable next-gen content acceleration. NTAP didn't invest enough or focus enough in the caching market and they have allowed CFLO to leapfrog them. The ball is now in CFLO's court to screw up. If CFLO doesn't continue to focus and continue to stay a few features ahead, then maybe NTAP can catch up. The act of discounting from NTAP is really not all that significant in itself. CFLO has already proven they can kick NTAP's butt in this market. I see no reason why CFLO is suddenly going to lose to NTAP because NTAP's uncompetitive product is suddendly cheaper. CFLO has bigger fish to fry than NetApp's me-too caching appliance anyway. Inktomi is up next as the incumbent caching infrastructure provider to service providers. We will next be hearing about CFLO taking share from Inktomi in the service provider caching market. Then INKT will talk about getting more aggressive vs CFLO and CFLO's stock will probably sell off again. Then CFLO will take more share from INKT and then CFLO will be trading much higher than $108. That is my opinion. We shall see. I am neither a buyer nor a seller at $108.