TechWeek: An Appetite for NetApp

When Network Appliance(NTAP Quote) ratcheted down its guidance in early August, plenty of investors took the network storage company off the radar screen. But that's changing fast.

Shares have run up nearly 30% since early October -- five times more than the Nasdaq -- and the company's charts indicate that there's still upside, says Rob Funk, of RGF Capital Partners, a New York-based hedge fund.

Funk, who doesn't hold NetApp at the moment, notes that the 50-day moving average is trending up and more importantly, the downtrend that started in mid-December of 2004 has been broken. As a short-term buy, it's a little pricey at $30. Funk would like an entry point of about $28. But as a longer-term play, it looks very good, he says. ...