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

To: Loren who wrote (3530)	1/11/1999 2:03:00 PM
From: Beltropolis Boy	Respond to of 17183

>Yes, I read the news release where he predicted the '3 to 10' rise... Using a timeframe of 3 years (from now THROUGH 2001), a 37% growth rate would bring them from 3 billion revenue to only 7.7 billion. It would take about 50% revenue growth to take them from 3 to 10 in three years. both you and JDN are making me itch <vbg> (i.e., i'm starting to scratch my head too). if you begin with $4B in revenue for FY98 (vice $3B), you will get ~$10B through 2001 with a 35% growth rate (which nonetheless is nowhere near $35B, even cumulatively). at its current pace, EMC is set to bring in near $1.2B in the fourth quarter which would put FY98 revenues at $4B. assume a 35% revenue growth rate through 2001 and you'll get a figure near $10B. TraderEd posted the lutts piece which might explain away the $35B number (assuming worth botched its wording): "EMC has grown revenues from $190 million in 1990 to today's $4 billion. Sales are growing at 35% yearly while earnings have grown over the past three quarters by 27%, 44% and 52% respectively. Lutts says profit margins are also expanding and now stand at 20% after taxes. EMC management expects to own 35% of a $35 billion market in 2001 (they now own 30%), and Lutts predicts EMC will become a $12 billion company."