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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST
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To: gmccon who wrote (11802)1/8/2001 11:40:30 PM
From: Gus  Read Replies (1) of 17183
 
Calm down.

You started this discussion by arguing that "the PE is too high for company so involved with dotcoms" then when confronted with facts that infrastructure dotcoms only represented 10% of EMC's revenue base and that EPS growth is accelerating with the growth of the software business, you argue that the percentages don't matter because "the internet angle and hype has helped keep this PE high."

You need to keep in mind that from the start of the ISP wars between AOL, Prodigy and Compuserve to the browser wars between Netscape and Microsoft to the certified bubble of the last 3 years fueled by easy IPO money, there were always two levels of internet activity: the frenzied activity of the pure dotcoms with unproven business plans and the more measured activity of the Global 2000 focused on using the internet to transform their operations (including many small and mid-sized businesses in the supply line) even as they were focused on other issues like Y2K and the Euro.

The glam stage of the internet, the ultimate network of networks, dominated by revenue-poor/multiple-rich dotcoms is over. Post-Y2K, the revenue-rich/multiple-poor Global 2000 are now beginning to deploy their internet strategies in typical rifle-shot manner. That's EMC's core market. That distinction makes all the difference in the world.

I'm not going into a valuation argument with you because that easily becomes a kiss and slap type of argument that's a waste of time. Mine.......and yours.<g>
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