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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: 5dave22 who wrote (133350)	2/22/2001 11:47:13 AM
From: tejek	Read Replies (1) \| Respond to of 1575919

You're not practicing what you preach. "The trend is your friend". I wouldn't touch the storage stocks. Not only are prices PE rich, but earnings (QOQ) are likely to trend down for a bit. It's a great sector, but I think there will be cheaper entry points. If I were to buy, I'd probably stick to EMC & NTAP. Dave, First BRCD's P/E is better than EMC's and NTAP's. Yesterday the CEO on BRCD's CC said revs next quarter will be flat or slightly better than this quarter's revs. Doesn't sound good, huh; however what that means is that next quarter growth YOY will slow from 293% to a still stellar 166%. In the meantime EPS this year is expected to be $.60 per share, giving BRCD a P/E of 58 at $35 where I bought. A P/E of 58 is reasonable for a company experiencing rev growth of 166% YOY. Supporting my thesis is the fact that of the three, BRCD recovered faster than NTAP and EMC this AM. Of course if the US economy does, in fact, fall apart severely, then all bets are off. However, I will have a stop loss in place at $32. At this point, I think the Naz stocks have pretty much corrected for last year's bubble...actually I think they have overcorrected. Maybe only JNPR has more to fall. ted