TC, EMC's high valuation was only due to its potential high growth. EMC was on roll just because of the Y2K; many companies used EMC for that purpose. It appears from what I hear on the street that EMC may become another SEG, QNTM, & WDC, ... within the next six months!!! It seems, the street is looking forward and values EMC with what it earns with the proper PE for the sector is grouped with! Another thing, I hear that EMC may be another PSFT!!!!! I do not believe that EMC to go to that extreme, however, possibility is there that EMC gets a PE of 25-30 in the near future!! WDC used to be Wall Street's darling (57 + - to 7 + -)!!
Now, many investors still are in love with EMC. Therefore, before the mass realization of these facts, the stock may behave with extreme up and down moves. Therefore, you want to be careful with your tight stops.
BTW, check puts on this stock and you see how expensive they are!!!!!!!!!!!!!!!!!
Good Luck |
