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.
As I type
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.