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’m truly experiencing the design and layout of your site. It is a extremely effortless on the eyes which can make it much more pleasurable for me to arrive listed here and visit much more usually. Did you retain the services of out a developer to deve…
[…]Wonderful story, reckoned we could combine a few unrelated information, nonetheless actually really worth taking a search, whoa did one particular study about Mid East has got a lot more problerms also […]
[…]Wonderful story, reckoned we could combine a few unrelated information, nevertheless seriously worth taking a look, whoa did 1 study about Mid East has got far more problerms too […]
[…]we prefer to honor a lot of other world wide web websites on the net, even when they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]
The best Kona Coffee took 16 centuries to arrive Online. Kona Coffee originated from the Arabica tree discovered 5th century although roast coffees best medicinal properties were not discovered until late 14th century A.D.
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.
脱毛
[…]the time to read or visit the subject material or web sites we have linked to below the[…]
Title
[…]one of our guests not too long ago recommended the following website[…]
Title
[…]The details mentioned in the report are a few of the ideal readily available […]
Title
[…]we came across a cool web page that you simply may possibly appreciate. Take a appear if you want[…]
Rancho Cordova taxi to Sacramento airport
[…]Here is an excellent Weblog You may Locate Interesting that we Encourage You[…]
خرید ، فروش دوربین مدار بسته
I’m truly experiencing the design and layout of your site. It is a extremely effortless on the eyes which can make it much more pleasurable for me to arrive listed here and visit much more usually. Did you retain the services of out a developer to deve…
gay men sex toys
[…]Wonderful story, reckoned we could combine a few unrelated information, nonetheless actually really worth taking a search, whoa did one particular study about Mid East has got a lot more problerms also […]
how to make a dildo
[…]below you will come across the link to some internet sites that we consider you must visit[…]
double dildo
[…]Wonderful story, reckoned we could combine a few unrelated information, nevertheless seriously worth taking a look, whoa did 1 study about Mid East has got far more problerms too […]
Title
[…]Here is a good Blog You might Uncover Intriguing that we Encourage You[…]
Title
[…]one of our visitors not long ago encouraged the following website[…]
Title
[…]we prefer to honor a lot of other world wide web websites on the net, even when they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]
Title
[…]the time to read or visit the content or web-sites we have linked to below the[…]
خرید ، فروش دوربین مدار بسته
we arrived across a great web site that you just could possibly delight in. Consider a search in scenario you want
best kona coffee online
The best Kona Coffee took 16 centuries to arrive Online. Kona Coffee originated from the Arabica tree discovered 5th century although roast coffees best medicinal properties were not discovered until late 14th century A.D.