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.
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.
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.
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.
average below corporate encouraged expectation front margins product revenue school
We are encouraged by the new product launches, which are timed in front of the back to school season. While a low-end product would have margins below Palm's corporate average of 39 percent, we have already incorporated this expectation into our revenue and margin assumptions.
behind business likely optimistic problems prospects reason services slump strong turn worst
The reason we are optimistic about IBM's prospects is that with the worst very likely behind it - Y2K freezes, the problems in the HDD business and slump in services revenues that impacted 1Q00 - second-half 2000 is likely to turn up strong for IBM.
buy odds
The odds are long that someone would buy Gateway.