I hate bank holiday's, but it gives me time to think or possibly look at investment's and st trades. So one question popped in my mind, was a large part of Netapp's success based on Xyratex technology? It's a question one must ask themselves on a slow day. Why does everyone jump off one boat into another, they can sugar coat press/opinions, its about money. End of story, period.
I ask myself what is changing for some Netapp products, everything. What hasn't changed is the hype Wall Street has turned towards Netapp avenue, again. I love when the street talks about fundamentals. Lets focus on one, the NTAP train was running down the track and Wall Street was rabid when NTAP was in the low $50's, we thought it was over priced to market, now the same "Street" is excited about stock price today and investing 101. NTAP is praised 38%+- below last parade, XRTX is buried.
A funny number points out something that interest me, NTAP is trading at about 3X BV and XRTX is trading below cash/asset value/BV. Now these other wall street brains ask you to invest in their mushroom logic, so one who invested in Netapps in 2012 loss money on paper and ended up with $0.00 dollars in 2012 investment income. Xyratex returned investor's about 24%+- in regular and special dividends. Now enter 2013, Netapp risk has increased and based on our white knight with no workable web site, XRTX is paying a dividend, sp below asset value and worst case the Klingons sell out Xyratex for a 50%+ premium over averaged lt share cost for most investor’s. Now, we seem to be the dumb ones who understand Xyratex was going to sell SI in 2013 and return investor’s another 20% special cash dividend in 2013. That seems like one hell of a management team to me, give us 2 years to change our technology and products to be successful in the new direction of cloud storage/management over the next two years and we will pay you 24% a year in dividends plus with our sp dragging below asset value, LT sp increase could be 28% a year, YOY, for the next 5 years, PLUS a dividend.
You know I must agree with Commander Kruge some days, its seems this whole "cloud computing" thing is an unknown technology, although the largest 50 technology companies in the world are using it and selling it successfully.
One must think outside the box, IMHO!
Did I mentions I hate dead president bank holidays’?