This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

NetApp Preps Post-Recession Plan

Stocks in this article: NTAP

NetApp did not provide second-quarter revenue guidance during its recent quarterly results, citing lake of macroeconomic visibility, so it will be interesting to see whether the firm brushes off its crystal ball Thursday.

The storage specialist also unveiled a shiny new CEO during the summer, with COO Tom Georgens taking the company's reins from Dan Warmenhoven. Described as a "planned transition", Warmenhoven now serves as the firm's executive chairman, and investors will be keen to see how his successor maintains the NetApp growth trajectory.

The new CEO is likely to face questions about his M&A strategy Thursday, particularly after NetApp lost out to EMC in the tussle to acquire Data Domain (DDUP).

With NetApp locked in a market share battle with rivals EMC and Hewlett-Packard (HPQ), it seems likely that the firm will look at other acquisitions and a number of names have already been mentioned. Possible targets could include software specialist CommVault (CVLT - Get Report) Virtual Tape Library (VTL) firm FalconStor (FALC - Get Report) or privately-held Sepaton

Another possibility is NetApp itself becoming acquisition bait, according to Broadpoint AmTech's Marshall.

"It has been widely speculated over the last few years that NetApp is an attractive take-over candidate for larger, more mature IT companies like Cisco (CSCO - Get Report), IBM (IBM - Get Report) and Hewlett-Packard," he wrote. "While we have no insight as to the validity of these speculations, we do believe that it would make sense for a larger IT company to acquire NetApp as it would be attractive from a product portfolio and accretion perspective."

NetApp shares dipped 77 cents, or 2.9%, to $26.06 Wednesday, while the Nasdaq rose 0.01%.

-- Reported by James Rogers in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs