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

To: HTO who wrote (6209)	5/4/1999 12:54:00 PM
From: JustMy2Cents	Respond to of 17183

M E R R I L L L Y N C H Research Bulletin Research Summaries Reference Number 11212416 United States May/04/99 11:48 Investor Support Emc Corp. (Emc; $97 5/16; B-1-1-9) DEC99E $2.03 00E $2.65 o As suggested this morning, EMC shares have experienced weakness because of the HP - Hitachi announcement. After a brief conference call with the company earlier today, it was indicated that management views this new arrangement as earnings neutral. o EMC management believes HP is attempting to improve its margins by working with Hitachi, and pointed out that existing EMC customers would find it hard to switch products due to the large software investments that have already been made. EMC also noted that in 90% of the situations in which they have sold into HP accounts, an EMC salesperson was involved, and EMC does 100% of the servicing. o Management intends to increase direct sales efforts and go after those accounts in which HP will not lead with an EMC product. o In our view, sales may weaken negligibly, however at current valuation levels we would reiterate our intermediate and long-term Buy rating. (S. Milunovich) Opinion Key (X-a-b-c): Investment Risk Rating(X): A - Low, B - Average, C - Above Average, D - High. Appreciation Potential Rating (a: Int. Term - 0-12 mo.; b: Long Term - >1 yr.): 1 - Buy, 2 - Accumulate, 3 - Neutral, 4 - Reduce, 5 - Sell, 6 - No Rating. Income Rating(c): 7 - Same/Higher, 8 - Same/Lower, 9 - No Cash Dividend.