The Black Box

[wahz]

Folks: it is possible if not likely that the purchase tonight of VMware by emc brings light to the "overreaction" by neng's stock price.

As far as we know, neng is simply getting margins squeezed on the hba business, but with the VMware acquisition by emc, it is quite possible the neng is losing the entire hba emc business. I am still checking on it, but it makes sense to me.

It is another poster here who deserves credit for figuring this out, not me.

Note that impact is still only 10% of neng's revenues for 2004, and this is the low margin business, so it would still seems an incredible overeaction. BUt I am still digging for more reasons...the facts might still get even worse