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

To: bob gauthier who wrote (4266)	2/8/1999 10:27:00 AM
From: dennis michael patterson	Read Replies (1) \| Respond to of 17183

Nice article. Thanks!

To: bob gauthier who wrote (4266)	2/14/1999 11:32:00 PM
From: Beltropolis Boy	Read Replies (2) \| Respond to of 17183

"this is not rumor control ..." ----- EMC Pondering McData Stock Sale, Merrill Analyst Hopkinton, Massachusetts, Feb. 12 (Bloomberg) -- EMC Corp., the No. 1 maker of computer storage systems, is considering selling shares of McData Corp., its computer network switchmaker unit, to the public, said a Merrill Lynch & Co. analyst. ''McData is positioning itself for an (initial public offering), which could come as early as the fourth quarter,'' Steven Milunovich said in a report after meeting with McData senior management. EMC bought closely held Broomfield, Colorado-based McData in December 1995 for $230 million in stock to gain access to its switch technology used in computer networks. In October 1997, EMC split off McData and gave it a separate board while keeping 80 percent of the shares. Hopkinton, Massachusetts-based EMC will have final say on any McData sale. EMC spokesman Mark Fredrickson called such talk ''premature,'' adding, ''If an IPO is the most attractive option, then that is a possibility.'' McData declined to comment. EMC fell 1 3/4 to 102 3/8. In Tuesday's report, Milunovich notes that research firm International Data Corp. estimates the market for new fiber optic network switches at $1.2 billion in 2002. McData's revenue could rise to $262 million by then, from an estimated $198 million this year, he said. ''To justify a move to independence,'' McData will have to sign agreements with International Business Machines Corp., Hewlett-Packard Co., Sun Microsystems Inc. or Compaq Computer Corp., Milunovich wrote. He rates EMC, which had about $4 billion in sales last year, a ''buy.'' A number of McData's competitors, such as Gadzoox Networks, also are thinking of going public, and the first one to do so might benefit from the publicity, analysts said. ''I think there might be more of an advantage to McData to being spun-off than to EMC,'' said Michael Geran, a DLJ-Pershing Division analyst who also has a ''buy'' rating on EMC.