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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (34328)	9/20/2001 6:55:21 AM
From: Clint E.	Respond to of 67943

Top Story: BRCD --Networked Storage Update It is too early to gauge how much of an impact last week's events and further economic weakening will have on third and fourth quarter estimates. However, our growth assumptions for SAN vendors in both periods are modest and for the most part still appear reasonable We do not expect any of the SAN vendors to benefit materially either from infrastructure rebuild or increased interest in remote data mirroring. The chief risk to our models is that another round of IT spending cuts could further delay SAN deployments and push recovery into the second half of next year. We think this risk is offset to some extent by the product cycle coming in the first half of C02. The availability of 2Gb fabric switches and a high port count core switch from Brocade promises to spur deployments and help business at EMLX and QLGC as well as BRCD. With stocks of the leading storage names threatening new lows, valuations are at attractive levels so long as numbers do not have to come down sharply. We cannot call any of the numbers safe in the current environment, but think there is less risk to numbers for BRCD, QLGC and NTAP than for MCDT and EMLX. Stock valuations already reflect this to a large extent. We continue to like the stocks on C02 prospects in the following order: BRCD, Emulex Corp. (EMLX, Trade), Network Appliance (NTAP, Trade), QLogic (QLGC, Trade). Brocade Communications Systems ( BRCD \| Profile \| Trade ) Strong Buy Author: Glen Ingalls F01E: $ F02E: $ Price: $17.76 We remain fans of BRCD as the premier stock to own in the SAN space given the company' s strong competitive position. Wit SoundView research provided through these pages has been prepared by Wit SoundView Corporation, a broker-dealer that is not affiliated with E*TRADE. Please review the important information about Wit SoundView's research reports.