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To: Bill Harmond who wrote (145149)	8/10/2002 1:37:34 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

The same one EMC has. Too many storage companies chasing too few customers IMHOP. Would I short storage companies now? No! cover story in barrons today.. 10 tech buy,,, 10 tech sell.. excerpt from article. EMC was once a huge investor favorite, dominating the market for high-end data-storage systems. But the company's once-fabled margins have been eroded by the emergence of considerable competition, and the stock has taken a beating: Now trading at about $7, it is down dramatically from more than $100 a share in late 2000. In response to the shifting competition, EMC has been beefing up its storage-software offerings, including features allowing the integration of its hardware with competitive gear. The company has also been an aggressive cost cutter. "They're doing all the right things after an incredibly hard time," says Soundview's Berman. "Last year the competition was finally competitive -- they would have had problems in 2001 even if tech spending was good. And EMC is far more advanced on the software front than their hardware rivals, like Hitachi and IBM." EMC is a corporate turnaround story, not a simple bet on improved corporate IT spending. On a statistical basis, the stock is hardly bargain priced, trading at a lofty 41 times expected 2003 earnings, but robust IT spending in 2004 would boost profits considerably. A bet on EMC will require more patience than other hardware stocks -- the company and its investors have to adjust to a storage market that is a far more competitive place than when EMC dominated the playing field. We think it will be a difficult adjustment. While we agonized on this one, we can't recommend it.

To: Bill Harmond who wrote (145149)	8/10/2002 9:35:08 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

the storage glut. All the storage that was overbought that co's are now trying to put to use. Guy I know sells storage. Hasn't sold a deal in the last 9 mos. Get with it William. It's not the good old bubble days. Victor