Despite an anticipated rise in demand for storage gear due to disaster recovery efforts, stocks in the sector fell today. By midday, most of the storage players hit 12-month lows on the Nasdaq composite index.
Hardest hit was McData Corp. (Nasdaq: MCDT), whose shares fell 12.27 percent to $9.65 by early afternoon. By 2:45 PM EST, EMC Corp. (NYSE: EMC) dropped 5.35 percent to $12.21; Network Appliance Inc. (Nasdaq: NTAP) fell 3.66 percent to $9.20; and Veritas Software Corp. (Nasdaq: VRTS) lost 8.46 percent to post a share price of $20.03.
Then came a slight rally: Brocade climbed 7.93 percent, to close at $19.19 a share. Other stocks also bounced back -- although not as well as Brocade. McData closed at $11.45, down .45 percent; EMC closed at $12.60, down 2.33 percent; Network Appliance closed at $9.29, down 2.72 percent; and Veritas closed at $22.14, up 1.19 percent.