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

To: Tony Viola who wrote (5898)	4/21/1999 11:14:00 AM
From: mauser96	Respond to of 17183

Tony, EMC is my biggest holding and I think that over the next few years earnings have more visibility than any other of my companies. Everything in the stock market runs in fads and cycles, and for the moment , especially with institutions, software companies are out and cyclicals (no pun intended) are in. I don't think this will last too long, since it won't take much money flowing into "economically sensitive" stocks to raise their P/E close to the much faster growth tech companies. The cyclicals are showing some increased earnings, and the MM take this to mean that good times are coming all over the world,. My take on it is that it is more likely that these companies have simply learned how to survive better in a world where they don't have pricing power. Higher oil prices are an aberration, and will last only until the inevitable cheating starts. Actually even before this decline in tech stock prices, I thought many techs were under-priced compared to companies like GM which are actually destroying capital. Most MM don't understand that the economy is undergoing a transformation at least as drastic as that seen in the 1920's, and todays equivalent of buggy whip makers don't have a bright long term future. When MM want to try something else, they always sell the big cap (liquid) winners. These are also the first ones they buy back.