Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: broken_cookie who wrote (5107)	11/17/2000 10:38:23 AM
From: tinkershaw	Read Replies (2) \| Respond to of 10934

No way is NTAP's beta equal to .8. That would mean that NTAP is 20% less volatile than the overall market. I've checked two sources now, Yahoo! and MSN, both say .8. This has been one extraordinarily volatile market lately. NTAP been a river of stability in comparison? I don't know. But beta is a disputed measurement. I've never considered volatility to be a measure of risk. A better metric would be to determine an actual risk measurement separate from stock price movement; ie, something that better measures the chances of relative business failure. There is for example an alternative measure of risk using arbitrage theory, but I just did not want to go there. So in the end utilize mathematics and then adjust for common sense. Common sense indicates to me that as technology companies go, NTAP is a rare breed and much less risky than most. I think the 20% market premium I used in the last calculation is more than adequate to cover this risk even if a .8 beta (as accurate as it may be) does not adequately address the market risk factor. Tinker