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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (100)	2/19/1999 10:33:00 AM
From: DownSouth	Respond to of 54805

Darn, I missed Tindle's NTAP piece.

To: Teflon who wrote (100)	2/19/1999 2:54:00 PM
From: DownSouth	Read Replies (2) \| Respond to of 54805

Teflon, I have been thinking about your PWA versus King rating for NTAP. You have NTAP and EMC in the same market as competitors. I believe they are currently in different markets and their level of competition is minimal. NTAP is in the Network Attached Storage market. EMC is in the mainframe storage systems market. Just by looking at their relative year over year growth (30% vs 70%), that fact is evident. If they were in the same market space, the much larger EMC would be dominating the expanding market. (We can discuss this further, if you wish.) In a nutshell, the NAS is just beginning a hypergrowth phase. In fact, the tornado that NTAP is/has entering represents Moore's ""discontinuous technology that allows a new value chain of vendors to displace the current establishment, thereby creating new sources of walth to invest in, and a continuous benefit that allows a customer base to adopt en masse, thereby creating the tornado surge in demand." (Page 151). RULE 2:If the category is enabling hardware or software, buy at the start of the tornado. EMC is on Mainstreet in the mainframe storage market, as evident from the observation that IBM doesn't even attempt to compete with them en masse. I contend that NTAP is the Gorilla of NAS, in a tornado, and will emerge as a Gorilla of NAS mainstreet. There will be a point of inflection where EMC and NTAP become day-to-day competitors in a few years, perhaps. Here is another opinion: iionline.com FWIW