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

To: bob gauthier who wrote (6498)	5/23/1999 10:39:00 AM
From: SDR-SI	Read Replies (1) \| Respond to of 17183

Bob: Oh my God! We are in big trouble now. If the projected market growth is a compounded 86% per year and the EMC CO can only commit to the meager "over 30%" growth per year", there are those skilled analysts that will, no doubt, review this material and come up with their now-well-documentable headline position "EMC acknowledges future decrease of market share". What WILL we do? The sky is falling!! Steve P.S. If indeed the 86% projection is high by a factor of 2, and if the real compounded growth rate is only 40%, that in itself is enough for EMC to keep upon its own course and to avoid acquisitions of such totally mismatched partners as STK, no matter how cheap their stock is. Of course, many of us would take the position that STK's stock price is the result of market evaluation of its inability to compete with EMC in EMC's product area, combined with its own poor performance in its separate principal product areas. JMHO, of course.

To: bob gauthier who wrote (6498)	5/23/1999 12:03:00 PM
From: Michael W. Brom	Read Replies (1) \| Respond to of 17183

bob, 86% is a relative term anyway. that's much more manageable for a small company. going from $1B to $1.86B is much easier than going from, let's say, $4B to $7.44B. if the 86% refers to the mean growth of the sector, then obviously a few companies (the smaller ones) will grow at a much faster rate while the big name companies, like EMC, will grow at a slower, but also more consistent and sustainable (and predictable), growth rate. i don't know about anyone else, but i'd rather have consistent and sustainable as i'm a LT investor in EMC. michael