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

To: John Carragher who wrote (5009)	3/20/1999 11:43:00 PM
From: Khris Vogel	Respond to of 17183

The Business Week 50 (the top performers of the S&P 500, and graded on total return for 1 and 3 years, sales growth for 1 and 3 years, profit growth for 1 and 3 years, net margin, and return on equity), in the March 29 issue of BW includes the following rankings: 1) Microsoft 2) Dell 3) Gap 4) Oracle 5) EMC EMC's ranking is up from 8th last year. As far as total shareholder return alone, for the last year EMC is ranked 3rd (after AOL and Schwab). For the last three years, they are ranked fourth (after Dell, AOL, and Compuware). Talking about the featured stocks from last year's BW 50 issue, they write "EMC Corp., the second-best performer [after Schwab], rose 199% [for the 52-week period ending 3/12/99], due to its dominant position in the sizzling market for the hardware and software that allows companies to store all the data, Web pages, and other information being churned out in the Internet Age." IMHO, the BW article dovetails quite nicely into the Barron's article.

To: John Carragher who wrote (5009)	3/21/1999 8:27:00 AM
From: dennis michael patterson	Read Replies (4) \| Respond to of 17183

Barrons irrelevant. My 2 cents is that this article is a non-event. First, everyone already knows everything in the article. The article mentions a price this year of 140. Well, that's not much of a move from where we are today. Second, if this article would help EMC then, by dint of the same logic, it would help the other top 5. But AOL is as overbought as it gets, and no one is buying Dell. I conclude that for most people, this article confirms what they already knw. I see a top Monday and heavy selling starting Tuesday. We're going back to 110 in the next few weeks.

To: John Carragher who wrote (5009)	3/21/1999 10:42:00 AM
From: William F. Wager, Jr.	Read Replies (2) \| Respond to of 17183

And Business Week has their "Top 50" this week...boring isn't it?---> Business Week: March 29, 1999 Cover Story The Top 50 1. MICROSOFT 2. DELL COMPUTER 3. GAP 4. ORACLE 5. EMC 6. COMPUWARE 7. AMERICA ONLINE 8. MORGAN STANLEY DEAN WITTER 9. SBC COMMUNICATIONS 10. SCHERING-PLOUGH 11. TELLABS 12. WARNER-LAMBERT 13. HOME DEPOT 14. CISCO SYSTEMS 15. CAPITAL ONE FINANCIAL 16. MERCK 17. AIRTOUCH COMMUNICATIONS 18. CHARLES SCHWAB 19. TJX 20. AMERITECH 21. MARSH & McLENNAN 22. BMC SOFTWARE 23. SUN MICROSYSTEMS 24. GATEWAY 2000 25. ELI LILLY 26. FORD MOTOR 27. MBNA 28. BELLSOUTH 29. NAVISTAR INTERNATIONAL 30. OMNICOM GROUP 31. SAFEWAY 32. SOLECTRON 33. CARNIVAL 34. PAYCHEX 35. WAL-MART STORES 36. INTERPUBLIC GROUP 37. LOWE'S 38. MAYTAG 39. FREDDIE MAC 40. INTEL 41. BB&T 42. BRISTOL-MYERS SQUIBB 43. DAYTON HUDSON 44. GENERAL ELECTRIC 45. AMGEN 46. AES 47. KOHL'S 48. WASHINGTON MUTUAL 49. BELL ATLANTIC 50. STATE STREET Business Week: March 29, 1999 Cover Story Spotting Winners: Our Selection Criteria Sure, size matters. But what's the point in being bigger if you're not better? With that in mind, BUSINESS WEEK two years ago introduced our Performance Rankings and its centerpiece, the BW 50 list of the best overall performers among the S&P 500 companies. We wanted to go beyond static lists that rank companies by sheer size or market capitalization. So we created a measure of growth that rewards companies for performance that truly rises above the crowd. To calculate our Performance Rankings, we began with two important factors investors use to judge performance: top-line revenue growth and earnings growth. We added total returns, a measure of how well management is doing. And recognizing that it is much harder to sustain growth than sprint for a few quarters, we tallied all three of those crucial rates over both one- and three-year time spans. Finally, we added two important indicators of the returns management earns from its assets: net margins and return on equity, both for one year. With those criteria in hand, we evaluated each of the companies in the closely watched Standard & Poor's 500-stock index. (S&P is owned by The McGraw-Hill Companies, which also owns BUSINESS WEEK.) Why the S&P 500? Because it is a universally accepted measure for stock performance, both on Wall Street and among small investors. Its 500 companies together comprise 70% of the market value of U.S. stocks. What you're left with is an in-depth look at how these companies really stack up against one another. Who had the best--or worst--three-year shareholder return among the 500? The best net margins? Answers to those questions and more can be found in the tables throughout this package. MAKING THE GRADE. But that's only a start. We've also graded the 500 companies on each of the eight criteria, based on how well each performed against other companies in the index. For each measure, the top 20% of companies earned A's the next 20% got B's, and so on down to the F's in the bottom 20%. The several S&P companies for which data were not available got incompletes. Finally, to get our overall Performance Rankings of the 500--and select the elite that make up each year's BW 50--we averaged together the individual rankings each company received for the different criteria. Then, to recognize that it's much easier for small companies to score big percentage gains than it is for big companies, we weighted them by sales volume. That gives you the overall Performance Rankings. The same criteria form the basis for each company's ranking within its sector, which can be found in our Industry Rankings tables. Together, the pair of tables form an annual corporate scorecard. Think of those at the top as the All Stars. For the bottom dwellers, it's time to run some laps. By Dan Beucke in New York Copyright 1999 The McGraw-Hill Companies, Inc. All rights reserved. Any use is subject to (1) terms and conditions of this service and (2) rules stated under ''Read This First'' in the ''About Business Week'' area. 03/18/99 20:32