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

To: Jacob Snyder who wrote (12306)	2/23/2001 9:07:23 AM
From: Gus	Read Replies (2) \| Respond to of 17183

Bottoms are notoriously hard to time. With the fiscal, monetary and regulatory rails falling into place, capital preservation and paying closer attention to the supply lines would seem to be the more constructive exercises. For instance, two suppliers -- VRTS and BEAS -- heavily exposed to the Solaris platform are currently being dismantled in the wake of Sun's warning last night. Another example, it was only a matter of time before Brocade's visibility would be clouded by Compaq's 4-5 week channel inventory since Compaq is Brocade's largest customer having accounted for 31% of last year's sales and since Compaq courses 70% of its SAN deployments (about 1,000 SANs a quarter) through the channel. Since Brocade is Finisar's largest customer, it was not really surprising that Finisar, which reported a day before Brocade, revised estimates and indicated that it had an inventory issue that would take 2 quarters to resolve. There are many ways to slice, dice and filter the information from different parts of the supply line. One guide to following the enterprise storage supply lines is that 20% of the world's corporations generally produce 80% of the world's data. For that 20%, the cost of hardware is often dwarfed by the cost of managing that data, which can go up as high as 10x the cost of hardware.