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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (39094)	7/16/2001 7:40:27 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

15:46 ET ****** EMC Corp. (EMC) 21.32 -0.80: Heading into this week's earnings report (due prior to the open on 7/18), stock is hovering just above its recently established 52-wk low of 20.10... In light of company's particularly nasty earnings warning on 7/5, when it slashed its EPS guidance to $0.04-$0.06 from $0.18, fact that stock is trading near its lows isn't surprising... But with bad news for the quarter already priced into the stock, Briefing.com asks if now is a good time to consider a short-term trade in anticipation of a "buy the fact" response to the earnings report... The answer is a qualified yes... At this point we doubt that EMC can still shock investors with negative news, as the most recent warning was about as ugly as they come... Consequently, it's much more likely that the company meets or slightly exceeds diminished expectations... In so doing, the stock will be positioned for a recovery rally of sorts... How far the stock can climb under such a scenario depends on two factors... First, the company's guidance... As long as EMC doesn't take Q3 EPS guidance much below $0.05, Briefing.com contends that traders will be inclined to bid stock higher... Second, the magnitude of the overall earnings rally... If we get another strong "buy the fact" recovery rally (in general) EMC could well make a run at the 26-28 area... Don't look for much beyond that however, as industry conditions remain very sluggish and competition from upstart Hitachi Data Systems (as well as others) remains intense. Robert Walberg, Briefing.com Ö¿Ö