EMC....
I thought the EMC-Boston presentation you linked was interesting...end-to-end solution, rah-rah etc
Thanx. I think its chief value was to give an overview of the Storage Industry, its segments, its expected growth over the next 5 years, and EMC's perceived place in all of that.
so inspite of NTAP's astronomical PE, it still looks to be the better choice for the LTB&H investor
I own both NTAP & EMC. The parallels might include investing in Juniper vs. Cisco. I see EMC as the Intel of its field, although I am not saying it's an exact analogy. Basically, I see EMC as a company that is huge, overall dominant, has tremendous reserves that are growing fast, and conducting tremendous R&D. Revenue growth is accelerating. It is not small and nimble. I see EMC as a "safe harbor" in stormy seas, but which will still appreciate 50% per year. Although in my case, my original shares from '99 are up around 300%. BTW, during the Spring TechWreck, NTAP declined to levels that no one anticipated; EMC held its own with significantly less loss.
Another benefit of EMC, as I perceive it, is that it sells to the richest enterprises, the cream of the crop. NTAP sells to the middle layers. During good times like we've had, NTAP's been running wild. It may be that during a recession or tougher times, the richest companies will continue to buy EMC goods while others are delaying purchases. But one could also argue that NTAP's goods are more affordable.
Bottom line, I think it is a solid company, with proven management, a longtime track record, in an industry that is red-hot. It has a dominant position in that industry, and plays in all segments of that industry. I own both NTAP and EMC. BTW, in the same way that UF worships Chambers, I think a case could be made for EMC's CEO, Mike Ruettgers. I think he's been there now for about 10 years. One of the themes I've been hitting on the past 12 months, stolen from Warren Buffett, is the importance of management, and knowing management.
The quality of management is one of the foremost reasons I like EMC. As a former Lu shareholder, who exited last Dec. & Jan., I think today is a special day to consider the importance of management.
Apollo |
