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

To: Mannie who wrote (9217)	2/13/2000 2:40:00 PM
From: Ron M	Read Replies (1) \| Respond to of 17183

Scott: We must have been reading the same series of articles at the same time, see my previous post. In any case a highly recommended read for everyone with an interest in storage.

To: Mannie who wrote (9217)	2/14/2000 8:22:00 AM
From: GVTucker	Read Replies (4) \| Respond to of 17183

Scott, RE: One items that stood out when they questioned EMC's ability to maintain prices, Ruettgers was quoted as saying that EMC finds that when they reduce prices by 1%, they see a 4% increase in demand. But what doesn't make sense to me is that although you're seeing an increase in demand, you aren't seeing an increasing rate of growth in the customer base. In fact, you're seeing a absolute decline in unit sales versus last year's 4Q. I posted this little chart last quarter, and duplicate it for the 4Q (data courtesy of Morgan Stanley): 4Q '99 3Q '99 4Q 98 Small systems (<1.2 TB) 250 250 300 Medium systems (1.2 TB-3.5 TB) 1000 950 1100 Large systems (3.5 TB-10 TB) 850 700 750 The marginal cost of each additional TB is minimal, hence the sharp revenue and earnings growth. IMO, this is not a dependable source of growth, particularly for in the technology industry. I am no longer optimistic about the fundamentals of this company.