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


To: JakeStraw who wrote (16852)7/14/2006 11:54:34 AM
From: Elroy  Read Replies (3) | Respond to of 17183
 
So EMC is now forecasting full year 2006 e.ps. @ .51

At a share price of around $9.5, that gives EMC a p/e of around 19...


Of course that PE valuation depends on if you include options expense and depreciation for acquisitions. A better metric is enterprise value to sales, relative to operating income.

EMC is cheap, but it's revenue growth is decelerating, and nobody knows when the deceleration will stop, so its a wildcard. Once they put up a quarter that show accelerating organic revenue growth, then we can have a clue what to do ith the stock. Until then, who knows?

Next week will be interesting with the rest of tech reporting. I would expect good results, and the Fed to not raise rates at their meeting in late July for the first time in about 3 year to all be good stuff, but so far the stocks are just going the wrong way.....