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Technology Stocks : McData (MCDT) -- Ignore unavailable to you. Want to Upgrade?

To: Mario who wrote (168)	2/8/2001 11:37:49 AM
From: Gus	Respond to of 234

Mario, I plan to call McData next week so I'll get back to you on that one. McData does have a 2-year non-compete agreement with EMC, a 5-year OEM agreement as well as a complicated 27-month tax-sharing arrangement that may affect any plans to combine the two issues in the near-term. I'm not sure, though. I do think that they should try to simplify their common stock structure to make it easier for people to accumulate the stock. Brocade was named to the S&P500 index yesterday so the storage networking sector is going to have a higher profile especially from investors looking for a cheaper alternative since Brocade is already around $20B. Unlike the last few years when fast-growing stocks were just plain sprinting to $50B, it's going to be hard for $20B stock to do anything but inch up and then only on the best possible set of news. MCDT, at under $5B, is ideally positioned to be that proxy since it is the only vendor with its own director switch, ASIC technology and software. 18 years of mission-critical experience is tough to match too. This is how the SAN bell curve looks like currently: Market Penetration 1998 to 2000 15% (early adopters) 2001 45% (early mainstream) 2002 85% (late mainstream) 2003 to 2005 100% (late adopters) Gus