Publish date:

Report Card: Kimberly Alexy

Bio

B.A.,

Emory University

; M.B.A.,

The College of William and Mary

. Alexy has covered hardware and data-storage companies since 1995. Before joining

Prudential Securities

she was an analyst at

Lehman Brothers

. Prior to that, she worked in corporate finance.

Industry Outlook and Style

Alexy has a mixed outlook for the broad computer storage and peripherals sector: She's bullish on storage but bearish on the disk-drive companies. "That's the irony," she says. "The disk-drive companies should be the primary beneficiaries for what has been blockbuster demand in storage, but they just cannot get out of their own way -- it's just a market share war."

The Prudential analyst is neutral on the disk-drive group and has not recommended these stocks for several years, though she occasionally makes trading calls. These companies, which include

Maxtor

(MXTR)

,

Seagate

(SEG)

,

Quantum-Hard Disk Drive

(HDD)

and

Western Digital

TheStreet Recommends

(WDC) - Get Report

, are currently preparing to roll out their new product lines, which feature disk drives that hold 20 gigs per platter, an improvement over the current 15 gigs per platter. Since she believes pricing pressures will remain aggressive through the third quarter, Alexy recommends staying on the sidelines "with a bent toward getting more aggressive on them in the late fall, particularly if we see signs of any kind of a product stumble."

Her clients praise Alexy's take on this segment. "She does good global work

and has kept me out of potential disaster stocks," notes one institutional investor in

TheStreet.com's

Analyst Rankings -- Equity 2000

poll.

Alexy is much more enthusiastic about the storage systems space. She likes

EMC

(EMC)

and

Network Appliance

(NTAP) - Get Report

. "They legitimately have a pretty good lead. Multiples have been high and remain high, but the growth is accelerating and the market leaders are the real winners, and those are the two."

Stock Pick

Favorite stock for next 12 months:

Network Appliance

Comment:

"They're the leader in network-attached storage, which is an explosive growth market, and the company is benefiting from accelerated growth."

Rate Their Stock Picks:

Which stock do you like best?

Alexy and Conigliaro: Network Appliance

Dean: EMC

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