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Technology Stocks : Computer Network Technology (CMNT) -- Ignore unavailable to you. Want to Upgrade?

To: Jaime Leiderman who wrote (583)	3/28/1999 5:51:00 PM
From: swiss	Read Replies (1) \| Respond to of 750

Although a bit dated, article discusses emc push in the san mkt and cos. riding emc coatails (cmnt): December 4, 1998 Riding EMC's Coattails WHEN A COMPANY grows from $123 million a year in sales to almost $4 billion in a decade, there's got to be more going on than just hard work. That's the case for today's screen pick, EMC Corp. (EMC). A dollar invested in EMC at its IPO in 1988 would be worth $9,000 today. But what's really fascinating is that EMC has transformed itself in the past decade from a struggling circuit board manufacturer on the brink of disaster into a systems business at the heart of a vital new market, enterprise storage. The market is not about disk drives, it's about dedicated computers built especially to manage data. What EMC understood back around 1993, when it embarked on stealing away IBM's (IBM) mainframe storage business, is that there was a lot of money to be made in helping PC and workstation companies like Sun Microsystems (SUNW) and Hewlett-Packard (HWP) create reliable storage systems that can match wits with IBM's most powerful mainframes. EMC's allies, including HP, are bound to become competitors as the market grows, but EMC is already moving into a new landscape, a special "storage network" called the Storage Area Network, or the SAN. EMC seems a bit pricey at a recent $80 a share and a forward PE of 53, but the SAN market looks like something to bank on in coming years. COMPANY CURR. PRICE CONSENSUS EST. EPS* P/E LONG- TERM DEBT AS A % OF TOT. CAPITAL MARKET CAP* COMPUTER NETWORK TECHNOLOGY (CMNT) 7.750 0.23 33.60 1.07 173 COMPAQ COMPUTER ( CPQ) 36.375 0.46 79.10 0.00 60783 EMC CORP ( EMC) 75.563 1.47 51.40 14.95 37713 HEWLETT PACKARD ( HWP) 62.188 3.29 18.90 10.14 64641 IBM ( IBM) 163.500 6.55 24.96 32.35 152556 LEGATO SYSTEMS ( LGTO) 48.000 0.69 69.56 0.00 1937 NETWORK APPLIANCE ( NTAP) 71.875 0.88 81.67 0.16 2735 SEAGATE TECHNOLOGY ( SEG) 31.625 1.18 26.79 19.36 7687 STORAGE TECHNOLOGY ( STK) 38.625 2.08 18.56 1.52 3908 SUN MICROSYSTEMS ( SUNW) 72.938 2.77 26.33 0.00 27630 VERITAS SOFTWARE ( VRTS ) 59.625 0.72 82.81 40.71 3122 Consensus estimates are for this fiscal year. Source: First Call Using this fiscal year's estimates. Source: First Call **In $ millions smartmoney.com