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

To: JRI who wrote (12273)	2/21/2001 10:56:29 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 17183

>>Until this recent episode, I believe Chambers had as much credibility as Ruettgers..<< I disagree. The chart of Csco tells you the street has not been buying it for months. When EMC ran up to 80 recently (3 weeks ago) Csco hardly budged. EMC is being sold because the street does not believe the slowdown will not hurt the growth. It's a PE reduction, nothing more. Reuttgers has done his job defending the EMC story. I really don't see what else he could say.

To: JRI who wrote (12273)	2/22/2001 5:35:54 PM
From: Gus	Read Replies (3) \| Respond to of 17183

Ruettgers is one of the few remaining that has not changed guidance for this year. Now he's done it. Not for the quarter, but he's creating room for EMC for the year with the 25%-35% revised revenue guidance. In this climate that probably means that storage stocks, the last sector standing, will suffer from anemic demand until visibility improves. Up to now there have been two major technology price wars raging and sending shockwaves up and down the global IT supply lines: in PCs/Servers and in Wireless. Now it looks like storage is poised to officially join them although, the high-end segment has been going through episodes of cut-throat pricing from IBM for the past year or so. There are currently more than 100 RAID vendors and more than 100 Storage Networking vendors. A small subset of that universe of 100+ storage networking vendors also compete in the most crowded areas of photonics, areas that are so crowded that it prompted Vinod Khosla, a noted VC, to predict that 95% will not survive. A major shakeout is knocking on the door.