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

To: JDN who wrote (10004)	4/26/2000 7:56:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 17183

Interesting note from the CPQ earnings. Storage revenue was down 12%. They are getting hammered in this arena. They didn't tell who was stealing the market share, but I can make a pretty good guess as to who is taking a lot of it.

To: JDN who wrote (10004)	4/26/2000 8:59:00 AM
From: jad	Read Replies (2) \| Respond to of 17183

EMC CEO Suggests Co.'s Stock Price Has Room To Rise By ROSS SNEL NEW YORK -- Shares of EMC Corp. (EMC), a maker of data storage software and systems, have room to rise, the company's top executive suggested Tuesday. "We had the fastest growth rate our base business in the latest quarter that we've had since 1995," Mike Ruettgers, the president and chief executive officer told Dow Jones Newswires. "That would imply that this is not a stock that is overvalued." Ruettgers also noted that some analysts had near-term targets of 150 for the company's shares, which recently changed hands at 132 5/16, up 2 13/16, or 2.1%. Last week, EMC of Hopkinton, Mass. reported first-quarter earnings of 30 cents a diluted share, an increase of 49% from the same quarter a year earlier. Like other technology companies, EMC has seen its share price gyrate in recent weeks when the technology-laden Nasdaq Composite Index posted some of its largest historical sell-offs, Ruettgers noted. "Clearly, some of the Internet companies got ahead of themselves," he said. "That is making people cautious of some components of the technology sector. But I think the major technology companies -- EMC, Oracle and Cisco -- will do just fine." Ruettgers also touted what he said was the fully integrated nature of his company's products and services. EMC announced a slew of new data storage systems and software Tuesday, including a new line of Symmetrix enterprise storage systems and new connectivity options for its storage network. "We have announced more products today than most of our competitors will announce this year," Ruettgers said.

To: JDN who wrote (10004)	4/26/2000 11:14:00 AM
From: jbe	Read Replies (2) \| Respond to of 17183

Sorry to "boor" you, JDN. <g> Sure, the Quicken calculation used the sector's ten-year-growth rate (16%), and a 15% discount, to reach the low ball price of $31. The highest price - $117.84 (Such exactitude!) -- can be obtained by using the company's own 5-year growth rate (33%), leaving the discount at 15%. But even that is lower than the present price. Are you suggesting that EMC's 'richness,' if we may call it that, is not/should not be a concern for prospective buyers? Ruettgers apparently does not agree with you,since he addresses the issue head-on in the Dow Jones item posted here. He points out that EMC's growth rate accelerated this past quarter, and indicates that he expects it to continue to accelerate, thus justifying a higher share price. He may be right; as a shareholder, I certainly hope so. As for raising such "boorish" questions in the first place, may I point out that the title of this thread -- EMC: How high can it go? -- encourages one to do so. jbe