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

To: kas1 who wrote (5197)	11/25/2000 5:05:18 PM
From: Hal Barnett	Read Replies (1) \| Respond to of 10934

CSCO oral history as a possible guide to NTAP performance. On March 9,1994 CSCO hit a high daily close for the year. Let me call this close 100% of Yearly High. On May 12,1994 the CSCO close was off its high by 28%. The next day CSCO dropped to 42% off its high. The next new high daily close for CSCO was achieved on April 26, 1995. This was brutal for CSCO investors at the time. For long term investors this was of less concern. The drop was caused by a decrease in the quarterly rate of revenue growth and a slight drop in gross margin as a per cent of sales. The Street in its usual tolerant way, hammered CSCO. A second point of comparison is that both CSCO and NTAP are essentially software companies with the software wrapped in hardware. CSCO routers talked to UNIX platforms, DEC/VMS systems and IBM computers. NTAP is equally conversant with UNIX and Windows servers. In my opinion this software feature is a key reason that NTAP will continue to be one of the big winners in the storage area. The most important issue for customers is likely to be INFORMATION MANAGEMENT and not data storage. I do not think it will take NTAP as long as it took CSCO to recover. Hal