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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: George Dawson who wrote (28125)	11/29/2000 4:34:17 PM
From: Greg Hull	Read Replies (1) \| Respond to of 29386

quote.bloomberg.com EMC, Data-Storage Companies Fall on Valuation, Growth Concerns By John Stebbins Hopkinton, Massachusetts, Nov. 29 (Bloomberg) -- Shares of EMC Corp. and other computer-storage companies fell amid concern that the stocks are over-valued given a slowing economy and increased competition. EMC, the No. 1 maker of data-storage systems for corporations, fell $6.44, or 8 percent, to $73.06 in late trading. Rival Network Appliance Inc. fell $3.47 to $48.75. Its shares have lost about two-thirds of their value from a 52-week high of $152.75 on Oct. 20. Brocade Communications Systems Inc., a storage- switch maker, fell $10.75, or 6.7 percent, to $150.25. Shares of computer-storage companies like EMC have soared as more companies do business on the Internet and generate huge amounts of data that need to be stored and quickly retrieved. Analysts say some investors are concerned that a slowing economy may cause companies to cut back spending on technology, making those shares too expensive. ``The fundamentals of the storage business are sound. But today it's all about the multiple (of the stocks) and the direction of the (stock) market,'' said William Lewis, a Chase H&Q analyst, who rates Brocade a ``buy.'' Competition among some of the data-storage companies also is weighing upon investor sentiment, analysts said. EMC, based in Hopkinton, Massachusetts, is expected to announced on Dec. 5 a new product that will compete directly with Network Appliance's main products, said Mark Kelleher, a First Albany Corp. analyst. He rates both EMC and Network Appliance, a ``strong buy.'' ``Overall, storage is the last tech sector to withdraw,'' Kelleher said. ``There is speculation that the economy is slowing and that could put earnings estimates at risk.'' Kelleher said he doesn't expect a slowdown in data-storage spending, but did say that some of the stocks got ahead of themselves. ``Brocade was one of the highest of the highest. They did need to come down,'' he said. ``Others have become bargains.'' Brocade reached a 52-week high of $267.44 on Oct. 23. Among other storage-related companies whose shares fell today was Emulex Corp., which fell $17 to $101. QLogic Corp. slipped $6.91 to $77. JNI Corp. fell $7.19 to $42.38. McData Corp. fell $8.06 to $40.13. Veritas Software Corp. tumbled $13.97 to $85.06.