Gus,
Would appreciate your take on this. It would be a disaster for anyone investing based on the assumption of good growth ahread(like me).
BK
**************
EMC seen as takeover target - Business Week column
NEW YORK, Jan 10 (Reuters) - EMC Corp. (NYSE:EMC - news), a maker of computer data storage systems, could be a takeover target, possibly by International Business Machines Corp. (NYSE:IBM - news), a money manager told Business Week's ``Inside Wall Street'' column.
Hilary Kramer, a senior managing director at Cisneros Group, told the magazine she thinks IBM will buy EMC because of price competition in the $35 billion storage business.
IBM expanded its storage business by more than 20 percent, which hurt EMC's sales, but IBM's expansion in this segment with its Shark product, which was bundled with other technology, the magazine said.
Kramer told the magazine that it will be willing to pay a premium for EMC to dominate a sector that could generate 60 percent profit margins, while rounding out its product line.
Salomon Smith Barney analyst Clinton Vaughan told Business Week that even without a takeover EMC is worth $20 per share, based on six times the company's anticipated 2003 revenues.
EMC closed at $17.09 on Jan. 10. The stock has a 52-week range of $10.30, hitting its low in late September 2001 to $81.75 in late January 2001.
EMC and IBM representatives were not immediately available for comment. Nor did they comment to Business Week. |
