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

To: Tony Viola who wrote (12207)	2/15/2001 12:11:09 AM
From: Gus	Respond to of 17183

January sucked for those whose December sucked also. Sun was one of the first companies to report that demand just fell off the cliff in December. Sun also subsequently reported that January didn't improve that much over December. EMC shareholder who thinks NTAP is going to get their clock cleaned by not just EMC, but other more broad-based (product-wise) companies You know, that's the problem with these NTAP fanatics. You try to point out the undeniable fact that receivables have grown faster than sales in each of the last 3 quarters, they immediately overreact and forget to consider that if EMC is pricing its NAS at 20% below NTAP's, other companies are pricing their NAS products even lower especially since those server vendors have much larger revenues than EMC. NAS vendors tend to overstate the value of their technology and understate their heavy dependence on a congested network because it indicates a low barrier to entry as evidenced by the rapid entry of many players into NAS as the market became big enough. Since the torrid growth of receivables relative to sales indicate the very real possibility that customers are looking for cheaper solutions, the DSOs definitely need more watching over the next few quarters. Until NTAP DSO's trend reverses, that stock is probably a volatile trader with limited upside and disproportionately higher downside.