some notes (ref emc) from today's Barrons semi annual interview with managers.
Our managers long have been of mixed minds about technology shares,
although they're net positive-make that wildly positive-about the tech sector
at the moment. Says Erik Gustafson, of Stein Roe, "We own companies that
build the infrastructure of the Internet: Cisco Systems, Motorola, Lucent
Technologies. We own companies that carry the data on that infrastructure:
MCI WorldCom and Qwest. And we own companies that store the data,
such as EMC. In that package you own the Information Age."
But James A.M. Douglas, of Douglas Nayes in New York, looks at things a
bit differently. "Cisco's our largest position, and it doesn't seem to lose its
luster," he says. "We also like voice transmission companies, even the Baby
Bells."
But EMC? "I think it's a Y2K fear
story -- fear of losing your data,"
Douglas says. "We sold our position,
although we did very well. EMC
remains a great company, but I don't
see it achieving the growth rate in the
future that it enjoyed in the past."
EMC's shares have more than
doubled over the past 12 months,
and the stock now sells for 52 times
estimated 2000 earnings of $1.41 a
share. This year, the company is
likely to earn $1.08, according to
First Call, an estimate-tracking
service. |
