and that is giving morons a bad name..

Yesterday Susquehanna analyst Medhi Hosseini trashed PSTG and offered up a $10 PT.

His concerns:

 

• Stiffening competition from traditional incumbents, which is expected to result in lower ASP/GB, thereby limiting revenue opportunities while also exerting pressure on gross margins
• Less favorable scale-out capability in Pure Storage’s technology relative to key competitor, EMC
• Lack of exposure to new emerging growth regions like China and India.

Hoss historically has covered semiconductor manufacturing and solar, so maybe that is why he fucked up his analysis so badly.

First of all, incumbents can’t compete with FSTG when it comes to flash memory, since PSTG owns this segment.

In addition, if EMC is so fucking smart, then why are they giving up and selling to Michael Dell and Silver Partners.

I see future expansion into China & India as a tremendous growth opportunity, its not rocket science to open offices and hire sales staff there.

I am always happy to see some idiot issue garbage because it presents a buying opportunity, that otherwise would not exist.

I snapped up more at $16.25 (current price $17.55).

The point to all this is, never trust on faith anything some suit in a coat and ties says, do your own DD.

BTW, channel checks are crap, as a CFO in a prior life, I would get cold calls all the time from some first year grunt out of grad school, asking me a lot of questions I may or may not answer tongue in cheek. If Oracle is trying to fuck me on a deal, do you honestly think I am going to say anything positive about them or maybe I am sleeping with the rep from EMC, guess what spin I am putting there.

Checks are to be taken with large bags of salt.

 

Just in:

Altimeter Capital has disclosed a new position in Pure Storage Inc (NYSE:PSTG), a flash enterprise storage array company, with a market cap of $3.23 billion. The filing showed that Altimeter Capital holds 1.80 million Class A common Pure Storage shares; the passive stake is equal to 7.2% of the company’s stock.

Have a great day.

 

 

 

 

 

If you enjoy the content at iBankCoin, please follow us on Twitter