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Technology Stocks : MTIC - Is this the next EMC? -- Ignore unavailable to you. Want to Upgrade?

To: Sunny who wrote (3491)	8/4/1999 10:22:00 AM
From: Sam	Read Replies (1) \| Respond to of 3748

Um, excuse me, Sunny, but while you are correct that MTI licensed some of their "key intellectual properties" to EMCseveral years ago, and are still getting a few million dollars a year for it, their IR people said over a year ago that they are no longer using those "key" inventions in their equipment. If this is the extent of your DD on MTI--posing a casual question to the thread and waiting for someone to answer--then you should definitely buy EMC. EMC is a gorilla, no doubt about it, and even though it is expensive, you will probably do well with it. But back in 1989 or 1990, you could have said the same thing about it that you are now saying about MTI. It didn't LOOK like a gorilla then, it was going up against IBM and STK, it was a small company not given by most observors much of a chance, and it didn't appear to have any competitive advantages other than perhaps the hunger and flexibility that being small sometimes gives to companies. MTI sells for about 3x revenues right now, I haven't checked on EMC's PSR, but it is a lot more than that. Just for fun, check out a 50 week comparative chart on EMC and MTI: techstocks.com. MTI beats EMC handily not because they are a better company than EMC or because they increased their earnings or revenues more than EMC (they didn't), but because their valuation was so much cheaper. They have a lot of room to grow, if they can get a hungry sales force together. Just for yucks, I just did a 30 week chart as well: techstocks.com But, of course, in a 5 year comparison, EMC beats the pants off of MTI (and almost everyone else as well): techstocks.com So what do you want to pay for, the last five years of growth, or the next 5 years?