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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (7641)	9/9/1999 9:25:00 PM
From: JRI	Read Replies (1) \| Respond to of 17183

HI JHG... there are obviously those on the thread that are better at answering questions regarding the technicals...but, a couple things occur to me: * Dell is not a threat to EMC anytime soon. Dell has gone out of their way to admit that they are not going head-to-head against EMC.....it would be almost suicidal at this stage (to take on EMC, a la Oracle vs. Microsoft). Dell is targeting the middle market here...flying below EMC's radar (although with the Data General purchase, EMC wants to get more active in that space too)..it is consistent with Dell's approach that they will try (in storage) to climb upthe food chain, slowly, incrementally, while trying to play the cost leader (value proposition) in their space....quarter-by-quarter gaining share.......in my view, the market is growing fast enough for both the small fish (Dell) and the big sharks (yes IBM,g, Compaq, and EMC) to grow nicely... (2) This is the kind of acquisition I think can work for Dell. First of all, the move was partly defensive (in response to EMC's purchase of Data General)..but also, Dell is acquiring great technology and a culture....extremely important, I think...that can blend well with Dell. Its obvious from Dell's past, that MD & crew are opposed to the great (cultural) strain that often accompany tech mergers (among other problems)....this merger seems to avoid that (only 120 employees...fast moving, entreprenurial group).... Although I haven't seen anything that would demostrate Shark is a serious competitive threat (technology seems a couple steps behind EMC, compatibility problems..), I would think IBM and a rejuvenated Compaq could pose the greatest threats to EMC acheiving its goals....to me, it looks like HP shot itself in the foot (among other places)..The best threat probably remains EMC's own execution... Dell is still planketon in this space, although I think (within a year or two) they will look real smart on this acquisition..same with EMC with Data General...