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

To: Boplicity who wrote (5063)	11/16/2000 6:05:09 PM
From: ratan lal	Read Replies (1) \| Respond to of 10934

ratan, What do think should be the correct value for NTAP? Greg - I cant give you the price of NTAP but I will give you comparison with EMC. I think NAS and SAN will converge and there will be differnece between EMC and NTAP going forward. Equivalent prices do not take into consideration the Growth Rate. Think NTAP has higher growth rate but not sure. EMC Closing Prices NTAP Equivalent Pr. P/E 141 84 73 330 31 Sales (ttm) 3.63 2.37 P/S 23 30 56 52-week hi/lo 105 / 41 152 / 28 So there you have it. 2 simple ratios showing a price range for equivalent P/E and P/s of between 31 and 56. Now you have to adjust these prices by applying a factor for each of the following: 1. Growth Rate - Easier for NTAP to grow sales from 750M that for EMC to grow from 8B. 2. Looks like NAS will overtake SAN. I am sure EMC is still trying to sell SAN but willing to provide NAS if customers insist. 3. Momentum carried NTAP way upto 152. That may be repeated for any good news that may come out of NTAP. 4. NTAP beat street estimates. Even tho they guided us lower growth next quarter, the growth is still substantial and they have always beaten that growth rate. 5. market conditions will change after elections. NTAP has been moving with the market after they took the hit down to 76. 6. Storage becoming priority item for networks to store all that data by corporations. I can get all my stock transactions for at least the last 2 years downloaded into my quicken. Hope you can give me reasons, other than above, why NTAP will go down to your 50 level or 30 level. If already posted, please provide link to post(s).