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

To: Murrey Walker who wrote (8975)	8/15/2001 5:10:40 PM
From: Jacob Snyder	Respond to of 10934

re: this company has been taken out to the woodshed and punished far to much and far too long On what, exactly, do you base that opinion? What is "far to (sic) much"? Are you just looking at the stock chart, and noticing that it's down a lot off its highs? Anything else? I calculate a P/S of 4.7 for NTAP now (= stock at 13/(TTM sales 989M/354M shares). EMC is at a very similar P/S. In 1998, the low P/S for NTAP was 3.5. A similar valuation today would be 13 X (3.5/4.7) = 9.7 In 1997, the low P/S for NTAP was 2.4. A similar valuation today would be 13 X (2.4/4.7) = 6.6 NTAP's position in its sector is better than in 1998 or 1997, but the industry is in a much worse position, and the macro situation is worse. Overall, those factors may roughly balance out, leading to the conclusion that NTAP could easily see the valuations seen then. Can't use P/E any more to value NTAP or EMC, as there ain't hardly no E left. I suppose you could use P/CF. Care to guess (and back up your guess with some numbers) what a reasonable P/CF would be for NTAP?