I believe in EMC and VMware. Clearly the future of storage of many companies because EMC & VMware can provide solutions for IP Storage-iSCSI, NFS, and Fibre Channel protocols. video: EMC’s Chad Sakac, senior director VMware strategic alliance discusses where each protocol fits and their unique capabilities in the VMware environment.
Credit Suisse, The Street.com, have outperform and buy ratings on the stock. Here is my take:
1. EMC reported 4th quarter 2009 earnings of $0.33, beating the consensus estimate of the 35 analysts covering the company by 8.55%.
2. This positive surprise is particularly noteworthy because the guidance for the quarter had risen 25.00% in the year leading up to the announcement, and yet the company was still able to better the number.
3. analysts earnings estimate is $0.24 per share, a 50.00% increase over the prior year 1st quarter results.
I currently am holding 3/4 of my target position for EMC. As the stock increases in the next few months, I will consider selling another 25% of my holdings. But today, at this point, I’m sitting tight on EMC.
After their earnings announcement on April 21, I will consider a selling price. Until then, I will be monitoring EMC news about projected earnings number, which is currently estimated to be $0.21 to $0.27 cents per share. Surely EMC will beat that eps, but by how much?
That’s why I rate EMC a hold.