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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Gus who wrote (12119)	2/11/2001 11:45:08 PM
From: pirate_200	Read Replies (1) \| Respond to of 17183

> 1) Receivables have grown faster than Sales each of the last 3 quarters. > > That is an early warning indicator that could mean many things with the worst > case scenario involving customers who have a hard time paying their bills > and who could potentially trigger some major write-offs down the road. I > happen to think the trend suggests that NTAP is sweetening the terms of its > deals due to increased competition. > > Book-to-Bill has limited significance because NTAP has a high turnover business > model. Gross Margins can quickly erode if NTAP has to write off > bad receivables. Regardless of a good book-to-bill and NO meaningful gross margin erosion, you'll take all indicators as bad and hypothesize the worst? Very open-minded of you. > 2) 40% of NTAP's revenues come from dotcoms who were doubling their storage > requirements every 90 days. The "questionable" dot.bomb business is single percentage points. This is also discussed on the conference call. The things in this "internet" category are also the storage service providers like "Storage Networks" and "Exodus", it isn't what you portray it to be. >3) NTAP's NAS business is growing slower than the market while EMC's NAS > business is growing faster than the market yet NTAP claims that there is no competition. NTAP's growth, top line and bottom line is over 90%, the NAS market isn't growing 90% per year, this is BS. > 4) NTAP is a broken-down momentum stock with a loyal sell-side following but slowing sales > and ballooning receivables. Connect the dots and you have a trader on your hands. Right... and EMC is looking real good right now? It's the stock market, not the stocks, if you were being honest.