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Strategies & Market Trends : BEAT THE S&P - with Momentum, High Growth, High Earnings

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To: David M. Sawyer who wrote (67)12/13/1998 11:21:00 AM
From: TradeOfTheDay   of 302
 
David,
did you see the review of EMC taken from ONLINE INVESTOR and reprinted in THESTREET.com by Laure Edwards?

EMC
Online Investor (Dec. 9)

Enterprise storage technology firm EMC (EMC:NYSE), though not as well known as Microsoft (MSFT:Nasdaq) and Dell (DELL:Nasdaq) shows strong earnings in a promising industry and is a good buy, says Online Investor.

EMC has shown a more than 50% annual growth rate in sales and earnings over the last five years. Sales grew to nearly $4 billion this year, from only $127 million 10 years ago. A lot of this is due to EMC's Symmetrix storage system, which allows companies to centralize storage for various computing systems, including mainframes, Unix and Windows NT systems.

Competition is formidable, however. Sun Microsystems (SUNW:Nasdaq), IBM (IBM:NYSE), Dell and Compaq (CPQ:NYSE) all are aiming at the enterprise storage market. But "EMC's technological lead is substantial and unlikely to be encroached near term," says Online Investor.

. Analysts predict earnings growth of 42% this year and a long-term rate of 28%. The target price is 87, though it has reached 80 3/16 recently, upon good recommendations from analysts.
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