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

To: GVTucker who wrote (11111)	9/13/2000 9:34:16 AM
From: Apollo	Read Replies (1) \| Respond to of 17183

GV: once you can determine that a stock like EMC is a Gorilla, isn't it equally important to determine if the market already is discounting this fact? Moore's contention is that the Market always underestimates the strength of the Gorilla, and therefore always undervalues it. Again, that's because the GAP & the CAP are underestimated, particularly the latter. For the Long Term Buy & Hold investor, EMC or NTAP now will look like a great bargain 5 years from now. You're invested in Intel; so am I. Intel is a Gorilla. In 1996 or 1997, the P/E afforded to Intel was in the 10-15 range or thereabouts. The Market underestimates the competitive advantage period of the Gorilla, and the Gorilla's ability to punch into new markets or generate new revenue streams. Intel is a cash machine, such that now, Intel Capital (investment arm of INTC) is generating billions in investment profits. GE, MSFT, same thing. That being said, I'm not advocating that we all go out and buy EMC or NTAP today. I cannot speak to market timing or short-term trading. Also, the Market has read the same books by Moore & by Christensen, and Gorillas and Gorilla candidates are being afforded higher P/E or P/S ratios than ever before, much sooner than before. But again, it looks like storage is here to stay for another decade at least. For LTB&H, I think it's a no-brainer. Apollo