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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (8615)	7/6/2001 8:29:14 AM
From: JakeStraw	Read Replies (1) \| Respond to of 10934

``EMC's business is being impacted to a degree with each unanticipated downward step in the global economy. It now appears that there are fewer dollars being invested in information technology than a year ago,'' said Joe Tucci, EMC's President and CEO. ``The earnings results for EMC's major customers - the bulk of the S&P 500, for example - have been like a ball rolling down a hill for each of the past three quarters. When our customers earn less money, most of them have less to spend on IT, and they take a longer time to spend what they do have. biz.yahoo.com Funny how just a few months ago a lot of people on this thread were going on about how storage was somehow immune to a slowdown in IT spending...

To: Jacob Snyder who wrote (8615)	7/6/2001 8:31:00 AM
From: techreports	Read Replies (1) \| Respond to of 10934

Limited downside. The gorilla game takes no bet-on-the-come risks A decline in stock price or possible decline is stock price is not the kind of risk Buffet is scared of. I think the gorilla game authors probably mean business risk. Buffet wants to own companies that are considered a toll-booth and that's basically what a gorilla is. The GG authors just go in more detail and say that a gorilla has an open-proprietary system which becomes a standard with many other corporations building a value chain around. Companies like Microsoft, Qualcomm, & Intel can limit their business risk, b/c they control their value chain and usually have more market power than other companies they compete with, which allows them to keep margins high, expand into new markets, blah..blah..you know the rest. Just a note, EMC during the 90s had an average P/S ratio of 3. Right now they've got about a 7 P/S ratio. NetApp has a P/S of 4.5, however, you could say the expansion in multiples was justified during the 99 and 00 range b/c the economy was growing so fast (like 5% GDP growth!)