EMC Corp (EMC)

Should see some M&A activity in the tech sector and this company has a high likelihood of being a target.

Cloud computing is still the future that will allow all of us to move away from storing information on our own computer or business on their own hardware. Their stake in VMware will eventually be a big benefit to holders of EMC. EMC is also a premier provider of storage hardware for companies needing to store huge amounts of data. The internet is beginning to develop into the business revolution we thought it would be before the telecom and internet business bust in 2001. Broadband usage is exploding and EMC should be a major benefactor of this expansion. I was early into the stock, but I an still holding my shares hoping that we will see improvement sooner than later. The networking stock, all though not performing well in this market, are still growing their businesses globally.

The world needs more storage and this company provides that to business, it is also part of the cloud computing network of companies so it also has that going for it.

PC virtualisation is a technology which will meet high demande once WEB 2.0 boom kicks on

explosion in use and storage of video

EMC Corporation Increases All-Cash Offer To Acquire Data Domain, Inc. To $33.50 Per Share
July 6, 2009
EMC Corporation announced that it has increased its offer to acquire all the outstanding common stock of Data Domain, Inc. to $33.50 per share in cash, for a total enterprise value of approximately $2.1 billion, net of Data Domain's cash. In submitting its revised proposal to Data Domain's Board of Directors, EMC emphasized that its all-cash offer is clearly superior to the $30 per share stock-and-cash proposal from NetApp. EMC has removed from its definitive agreement all deal protection provisions that could further impede the maximization of stockholder value for Data Domain stockholders, and urged the Data Domain Board to do the same. EMC is prepared to close the transaction within two weeks.

This addition should increase earning.

EMC will ride the coat tails, rightly or wrongly, to about $35 in the next year in my opinion. That's probably conservative.

VMWare is amazing and a tremendous cost saver! Great company.

Not only storage, but server virtualization with VMWare

Huge value, given it's stake in VMW

1. Tech Is Ready To Shine.
2. $23 Stock With A $19 Price.
3. Stock only Down 1 Point After The Recent Market correction.

The VMWare IPO is a known fact at this point - at least to most technology IPO followers. However, VMware is no flash in the pan, and as a public company they will continue to outperform and take EMC higher as people anticipate a dividend of VMware shares. You don't often see companies at $700M revenue growing at 60-100% year-over-year, but VMware is just that type of opportunity.

EMC. Creates data information storage centers. World leader in the market. Over 9 bill in net rev i dont even know how many consecutive quarters. Now with VMW there unstopable.

spin off of vm ware ipo.

possible takeover candidate

The next earnings report will please the gurus -thanks to vmare IPO on top of the regular earnings.

On October 14, 2009 at 1:37 PM, portefeuille (99.99) wrote:

Our second largest investment is our stake in EMC. We invested in EMC because of the high
quality nature of the company’s two principal business lines – the Information Infrastructure and
Virtual Infrastructure businesses – and our ability to acquire a position at a substantial discount
to our estimate of fair value.
Each of EMC’s Information Infrastructure’s three segments – Information Storage, Content
Management and Archiving, and RSA Information Security – leads the market in which it
competes. Because of the extremely high compound growth rate in data globally – estimated by
industry experts at 60+% per annum; (think saved YouTube videos and regulatory requirements
to preserve documents and data), we believe that demand for data storage over the long-term is
largely insensitive to the economy. As a result, we expect that EMC’s dominant market position
in Information Infrastructure will continue to allow it to generate growing, and predictable free
cash flow from new product sales, recurring maintenance and warranty revenues, and the sale of
consumables. The company also benefits because of its substantial operating leverage from
economies of scale, large barriers to entry, and economies of scope, where the breadth of the
company’s product offering is a significant competitive advantage.
EMC’s customers are diverse by industry and geography and enjoy efficiencies from
concentrating their infrastructure spending on a small number of market leading vendors such as
EMC. Its customers are also highly risk averse, as data storage is a critically important function
for regulatory and competitive reasons, and customers face significant costs if they switch to an
alternative vendor.
Information Infrastructure enjoys the benefits of both the inherent operating leverage of the
software business with the high switching costs of the hardware business. Because EMC’s
Information Infrastructure hardware is built from the assembly of components manufactured by
multiple, 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 to
additional offerings from EMC, and a sales force that is considered by many to be the best in the
information technology industry. Combined, these assets facilitate EMC’s expansion into
adjacent markets.
The rapid adoption of virtualization and cloud computing led by EMC’s 84% owned, publicly
traded VMware subsidiary – we are rapidly moving to a world in which you will simply rent
your 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’s
offerings, while improving EMC’s opportunity to differentiate its offerings and maintain its
pricing.
VMware is driving a transformation of the information technology industry, and in that process
we expect it will capture large profits over time. We believe that the VMware can ultimately
enjoy a market position and economics similar to that enjoyed by Microsoft’s Windows x86
server and desktop operating system.
We attribute EMC’s substantial stock price appreciation in recent weeks to the market’s
recognition of a recently completed strategic acquisition, better-than-expected second quarter
operating 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 two
core operating segments will continue to increase at an attractive rate.

(from here: Pershing Square Q2 2009 Investor Letter)

short term- they should show they are on track for improvement

EARNINGS DUE TOMORROW! expect to beat by 2 cents or better; unlike IBM and AApl there is no substatial change from one year ago price. Aqisitions will show up in 2007's numbers.