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

To: Nichols who wrote (9400)	3/3/2000 4:29:00 PM
From: JRI	Respond to of 17183

Nichols...I think you are mis-interpreting the purpose of my posting... If there is weakness in a stock....it is always a good thing to question: Is it (the weakness) something fundamental to the operation to the company?...is it a normal "resting" period?....is this particular group "out of favor" (and if so, for how long)?...is this a big-cap vs. small cap thing....?? Or, is it the result of a guy like Tice? It is likely, given the new information I have about Tice that EMC's current "resting" is not just a normal resting period.....but is a result of Tice's questions about EMC accounting of the merger. If this is the case, then most of the answers I received about my initial inquiry on the thread ("something wrong with the stock") were simply wrong; There is a problem here.....perhaps it is short-term......very short-term......but it is not an insignificant event...if the perception lingers that EMC is doing something funky with the books (rightly or wrongly)...the stock is going to suffer....until the matter is cleared....if you wish to know how such doubts can effect a fundamentally strong company (with huge cash flow)...take a look at Tyco over the past 6 months... BTW- If you go back to April '99....EMC performance has not been that strong (relative to the Nasdaq) as many of its big-cap tech brethern....one could argue that performance has been average or slightly better...for about 10 months now... Perhaps you are willing to buy and hold stocks while they perform (average) or poorly for months...I do not (especially in an environment in which BRCM doubles EMC 2 month return IN ONE DAY)...the risk premium for holding the BRCM's (vs. EMC) of the world shrink significantly when BRCM is outperforming 8-to-1, 10-to-1 or more...even on a short-term basis....In other words, the current environment rewards examining your positions on a very, very short-term basis (if you wish to maximize returns).. This was also the basis of my original questioning: Does it still make sense to be wedded to the "buy the gorillas and forget it strategy"?? Like it or not, there is a ton of money that buys on technicals (charts)..the trend is likely increasing...pressure on money managers to perform is forcing them to buy performance, cut laggards... I remain long EMC...I would like to see the company create a catalyst to pop the stock (ie.. split announcement and/or earnings hint and/or addressing Tice charges), and give the technical guys and fund managers a reason to buy/add....