Andrew Neff
Andrew Neff
appliance beginning business ibm network outlook positive provided revenue
While the earnings-per-share outlook was inline with expectations, Network Appliance provided a positive revenue outlook for the fourth-quarter with IBM business just beginning to ramp.
compelling ibm maintain near pressure rating remain stock
While the stock could remain under pressure near term, we maintain our 'buy' rating on IBM owing to a compelling second-half story.
fill good helps ibm margin product sell
It's good for Compaq at the margin, because it helps them fill out their product line, and it is good for IBM at the margin because it helps them to sell storage.
discount ibm percent valued
We still see IBM attractively valued at a 13 percent discount to S&P multiple.
cash consistent degree earnings flow growth high ibm investor owns relatively
As we have said before, the investor owns IBM for its consistent earnings and cash flow growth and relatively high degree of earnings predictability.
buying calendar continue operating opportunity stock view
We continue to view the stock pullback as a buying opportunity, with Apple's price-to-earnings at 17 times our calendar 2007 operating earnings-per-share estimate.
both continued estimate happen increases large law multiple numbers requires rich strong surprises unlikely upside
The stock's rich multiple requires continued strong upside surprises and estimate increases -- both of which are unlikely to happen near-term as the law of large numbers catches up with the company.
against company engines execution goals growth multiple revenue
We think the company has multiple engines of growth coupled with better execution against the goals of diversifying its revenue streams.
believe extend further growth lead means potential
We believe this means more growth and the potential to further extend its lead in the server arena.
july last seven six stocks technology time weak
Six of the seven last years, technology stocks have been weak around that time period. June, July has usually been around a bottom.
apple bundle creates customers july launch lengthy mac march onto plan plans potential rather release stores surprised systems waiting
More importantly, we are rather surprised by the launch plan for Mac OS X. Apple plans to release the new OS into stores in March and then bundle onto systems in July -- which creates the potential of a lengthy stall by customers waiting for the new OS.
good numbers operating
The operating numbers were not as good as advertised.
both confident continued estimate happen large law network numbers require rich strong surprises underlying unlikely upside
While we are very confident about the firm's underlying fundamentals ... Network Appliance's rich multiples require continued strong upside surprises and estimate increases, both of which are unlikely to happen near-term as the law of large numbers catches up with the company.
across ahead business demand estimates halfway management previous quarter raised reflect relative strong sun trends upside
We raised our EPS estimates for Sun to reflect upside in relative demand to our previous expectations. Sun management indicated that demand trends were ahead of its expectations ... and that business halfway into the quarter was very strong across the board.