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

To: JRI who wrote (6445)	5/15/1999 4:51:00 PM
From: William F. Wager, Jr.	Respond to of 17183

Value Line comments on the H-P and Y2K concerns (May 14)------------> "As for the potential end of the H-P agreement, we stress that EMC al- ready has control over the accounts acquired through the reseller ag- reement with H-P and, therefore, should be able to service those cus- tomers through its own sales people. The company has spent heavily to build up its sales force over the past year or so to meet the ever-in- creasing demand for data storage. Thus, we believe that it is well prepared to meet this challenge. We urge shareholders not to over- look the fact that the reason EMC has been so successful in recent years is due to the superiority of its products. The EMC name carries significant weight, a fact which the company should have no trouble capitalizing upon should the H-P relationship completely dissolve. It's certainly possible that EMC could see a slight slowdown in momen- tum in the second quarter amid the uncertainty related to the erosion of the H-P relationship. But we are not changing our full-year 1999 earnings estimate of $1.00 a share, since we look for business as us- ual to resume relatively quickly. As a result, these top-ranked shares continue to be highly recommended for risk-tolerant investors." And on the Y2K issue: "...the purchase of new storage capacity cannot be delayed...and it seems highly doubtful to us that the demand for new storage capacity will wane at any point this year." [Note: this view is confirmed by a number of industry studies, including those conducted by EMC with its own customer base.] Couldn't have said it better myself. :) --Bill