Recs
October 14, 2009 – Comments (12) | RELATED TICKERS: JMBA
His pitch
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=264536&t=01003120767258779834
http://caps.fool.com/player/bridgeboy0.aspx
I just hit the pitch, so it will take 20 minutes to rec his pitch on JMBA
Oh, and we are in first place for the week at wallstreetsurvivor
http://www.wallstreetsurvivor.com/Public/Content/MSN/Rankings/AllStarPortfolio.aspx
Hey, Portefeuille, are you still holding FACT to 19?
-solaris
hi Solaris.
could you start EMC as my "new second pick" in the allstarportfolio FACT (the limit to end the FACT call of $18.00 has been reached)?
The pitch.
------------------------------------EMC CorporationOur second largest investment is our stake in EMC. We invested in EMC because of the highquality nature of the company’s two principal business lines – the Information Infrastructure andVirtual Infrastructure businesses – and our ability to acquire a position at a substantial discountto our estimate of fair value.Each of EMC’s Information Infrastructure’s three segments – Information Storage, ContentManagement and Archiving, and RSA Information Security – leads the market in which itcompetes. Because of the extremely high compound growth rate in data globally – estimated byindustry experts at 60+% per annum; (think saved YouTube videos and regulatory requirementsto preserve documents and data), we believe that demand for data storage over the long-term islargely insensitive to the economy. As a result, we expect that EMC’s dominant market positionin Information Infrastructure will continue to allow it to generate growing, and predictable freecash flow from new product sales, recurring maintenance and warranty revenues, and the sale ofconsumables. The company also benefits because of its substantial operating leverage fromeconomies of scale, large barriers to entry, and economies of scope, where the breadth of thecompany’s product offering is a significant competitive advantage.EMC’s customers are diverse by industry and geography and enjoy efficiencies fromconcentrating their infrastructure spending on a small number of market leading vendors such asEMC. Its customers are also highly risk averse, as data storage is a critically important functionfor regulatory and competitive reasons, and customers face significant costs if they switch to analternative vendor.Information Infrastructure enjoys the benefits of both the inherent operating leverage of thesoftware business with the high switching costs of the hardware business. Because EMC’sInformation Infrastructure hardware is built from the assembly of components manufactured bymultiple, highly competitive, third-party suppliers, EMC does not suffer the inventory risk,capital intensity, and supplier negotiating power of traditional hardware businesses.EMC’s off-balance sheet assets include a large base of satisfied customers that are receptive toadditional offerings from EMC, and a sales force that is considered by many to be the best in theinformation technology industry. Combined, these assets facilitate EMC’s expansion intoadjacent markets.The rapid adoption of virtualization and cloud computing led by EMC’s 84% owned, publiclytraded VMware subsidiary – we are rapidly moving to a world in which you will simply rentyour computing power and storage from third parties and you will no longer have that noisy,heat-generating, power-consuming box under your desk – increases the demand for EMC’sofferings, while improving EMC’s opportunity to differentiate its offerings and maintain itspricing.VMware is driving a transformation of the information technology industry, and in that processwe expect it will capture large profits over time. We believe that the VMware can ultimatelyenjoy a market position and economics similar to that enjoyed by Microsoft’s Windows x86server and desktop operating system.We attribute EMC’s substantial stock price appreciation in recent weeks to the market’srecognition of a recently completed strategic acquisition, better-than-expected second quarteroperating performance, and the continued business progress of VMware.We believe that EMC is undervalued on a sum-of-the-parts basis, and that the value of its twocore operating segments will continue to increase at an attractive rate.(from here: Pershing Square Q2 2009 Investor Letter)
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oh, was it $19.00? Then please simply end the FACT call now. no limit needed for FACT and EMC.
Got it.
You gave it a red-thumb instead of a green. You may want to contact Motley Fool about getting that fixed.
And get the "Yes Man" charm back!
well, the wrong call is "in the green" nicely so far ...
CPBY got the first double!
How did i do that? I feel so silly. This is not the first time i've had to have jake fix my mistake.
I hope he can do it again. I would rather have the yes man charm than 4 points.
Let me get on it.
CONGRATULATIONS Caidencollett07 on your double bag.
Oh, btw, HEY, i said we are in first place for the week at WSS!
Portefuille. Your WSS account:
$2,129.90 FACT
$ 824.82 SQNM
$2,954.72 TOTAL
. . . . . for you to do with as you'd like.
Want me to leave SQNM alone, and put the 2,100 on EMC? (holding SQNM for CAPS accuracy, and capital retention?)
Oh, and you didn't give me a time frame. I think i picked one year. Mind the rules young man.
Can you put $1000 into EMC, $500 into SQNM (thus increasing that position) and keep the rest (ca. $629.90) in FACT? I hope having 3 positions is okay as long as we don't have that many participants.
So please "sell" 85 FACT shares, "buy" 55 EMC shares and "add" 150 SQNM shares.
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