While we’re all bitching and moaning about do-nothing old tech stocks like Microsoft and Cisco, EMC has very quietly been running like an escaped convict trying to stop his baby mama’s wedding before its too late. Run, Jimmy – I just know she still loves you!
What was I talking about? Oh yeah, so EMC has been an absolute wildebeest over the last year returning a jaw-dropping 52%, almost a double over the tech-heavy Nasdaq (as seen below):
Why, while its old tech brethren are sleeping so soundly, has EMC been such a great performer? They have something the others don’t – secular growth.
EMC plays in the data storage sandbox almost exclusively and the need to be able to store (and access) data in a scalable way has never been greater. It also shows no sign of slowing down ever. We’re not exactly on a trajectory of creating less digital stuff now, are we?
I’m not in the name personally, as far as storage names my only pure-play at the moment is Network Appliance, but the story there is pretty much the same. When I looked at the numbers between the two companies, however, I was amazed to find out that EMC is outspending its smaller rival NTAP in R&D in a meaningful way, $2 billion annually versus $600 million.
Equally amazing is that EMC has been smart enough to hang onto their single best asset, an 80% stake in virtualization monster VMWare (VMW). They bought VMW in 2003 for about $600 million and they have since seen a 65x return on it. Ridiculous! I’m sure over the years there have been some tempting opportunities to have divested of it but the company hung in there knowing that the best was yet to come.
I think the message is that storage, unlike desktop software (as in the case of Microsoft) or physical routers and switches (as in the case of Cisco) is still a growth business. EMC has done a lot right, don’t get me wrong, but what really separates them from their fellow 90’s era stalwarts is the business they are in. In the tech sector, end demand makes the stock, not the other way around. This is something the value guys need to keep in mind when hunting for bargains in the large cap Nasdaq names.
(yes, I know this graphic is gangsta and if anyone from EMC corporate wants to make t-shirts, all I ask is for a size XL mailed my way)
I do not know if it’s just me or if probably everyone else encountering problems with your site. It seems as if some of the created text inside your posts are managing off the monitor. Can any individual else please comment and enable me know if this i…
We totally enjoy your site and uncover nearly all of your post’s to be what exactly I’m searching for. Does a single offer visitor writers to compose content material for you? I wouldn’t thoughts composing a publish or elaborating on a whole lot of the…
I was curious if you at any time believed of altering the format of your internet site? Its very nicely prepared I adore what youve obtained to say. But perhaps you could a little much more in the way of content so folks could hook up with it much bett…
[…]Wonderful story, reckoned we could combine some unrelated data, nevertheless actually really worth taking a search, whoa did one particular learn about Mid East has got more problerms as well […]
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
دوربین مدار بسته62A;ه
I do not know if it’s just me or if probably everyone else encountering problems with your site. It seems as if some of the created text inside your posts are managing off the monitor. Can any individual else please comment and enable me know if this i…
Title
[…]we came across a cool website that you might get pleasure from. Take a appear should you want[…]
best work at home jobs 2017
[…]although websites we backlink to below are considerably not associated to ours, we really feel they may be really worth a go by, so have a look[…]
دوربین مدار بسته ارزان
We totally enjoy your site and uncover nearly all of your post’s to be what exactly I’m searching for. Does a single offer visitor writers to compose content material for you? I wouldn’t thoughts composing a publish or elaborating on a whole lot of the…
دوربین های مدار بسته
I was curious if you at any time believed of altering the format of your internet site? Its very nicely prepared I adore what youve obtained to say. But perhaps you could a little much more in the way of content so folks could hook up with it much bett…
Title
[…]Wonderful story, reckoned we could combine some unrelated data, nevertheless actually really worth taking a search, whoa did one particular learn about Mid East has got more problerms as well […]
vibrators
[…]just beneath, are many totally not connected sites to ours, nonetheless, they may be certainly worth going over[…]
Best G-Spot Vibrator
[…]Here is a great Weblog You may Uncover Exciting that we Encourage You[…]
sunnymegatron
[…]we came across a cool site that you just could delight in. Take a appear if you want[…]
Pink Slim
[…]The info mentioned inside the post are several of the very best accessible […]
Title
[…]Every the moment inside a while we pick out blogs that we study. Listed beneath are the most up-to-date internet sites that we choose […]
Title
[…]Here is a superb Weblog You might Come across Interesting that we Encourage You[…]
Title
[…]very couple of internet websites that take place to become comprehensive below, from our point of view are undoubtedly well worth checking out[…]
womens fashion
[…]Here is a good Blog You may Find Fascinating that we Encourage You[…]
footwear
[…]the time to study or check out the subject material or websites we’ve linked to beneath the[…]