Quad-K,
I don't follow DGN, so I would be doing you a dis-service to comment on their product or strategy.
However, I don't think that this downgrade made much sense. Especially in light of the company strongly refuting his comments with a follow up public press release, and probably contacting him in private .(...what a good IR dept does when things like this happen).
Is EMC just supporting their stock? NOT just. Rather, because their press release comments have to be based on their best business practices and prognostications, their credibility for the "30% this year" re-iteration comment is at stake, and they know it.
I therefore think that Q1 is definitely in the bag, and they've got a good bead on all the business they need (HW, SW and services) to drive 30% for the year. It's too late to call EMC's investor relations today (and they are closed Monday for a Mass holiday) but when I did, I engaged them in a dialogue about this issue. Their replies inspired confidence in their action plan and other important events.
That works for me. So I took a position today, via an option transaction, on other people's fear.
There were some big blocks traded today: 400,800 shares at 114 1/4 at the open, and then about 100,000 shares at 105 1/2. We may go a little lower, but I expect EMC to be much higher in 3-6 months than where it is today.
I have traded this stock for the last three years. Not invested, traded. I think those that buy here are going to happy for a ST trade, or LT if they hold it.
Regards,
Steve |
