Networking and Data Storage Names Decimated Today – APKT NTAP RVBD ARUN JDSU

While it’s bad out there almost everythere (ex gold), the networking and data storage type of names are being blistered.  Both Pacific Crest (networking type names) and S&P (data storage) are downgrading many of the names here, after last night’s whiff by Network Appliance (NTAP).

  • NetApp: Rating to Hold from Strong Buy, his target drops to $46, from $58. “The current sales environment is far weaker than our prior outlook, and we believe that conditions will get worse given the uncertainties about sovereign debt issues,” Yin writes.

Pacific Crest hit a broad spectrum of companies:

  • Acme Packet, Cisco, EMC, Meru Networks and Riverbed: to Sector perform from Outperform.
  • Brocade, Emulex, Hewlett-Packard: to Underperform from Sector Perform.

This a day after Blue Coat Systems (BCSI) [long time readers will remember this name from 2007, 2008) was crushed to the tune of 25%ish post earnings.  Eventually (vague term) we’re going to see some great long term bargains in the group, but this action is similar to early 2008 when the stocks were forecasting what was coming down the pike in terms of demand.

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As I type

APKT -19%
NTAP -17%
RVBD -15%
ARUN -15%

Out of a pool of some 2000 stocks in the datebase of companies over $300M market cap, average volume 200K, stock price over $10 – these are 4 of the worst 5!

JDSU (optical networking) is near there too at -13%, after a poor outlook.

No positions

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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