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)
[…]we prefer to honor numerous other web web sites around the internet, even though they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]
[…]Wonderful story, reckoned we could combine a few unrelated data, nevertheless really really worth taking a search, whoa did one understand about Mid East has got a lot more problerms also […]
[…]Wonderful story, reckoned we could combine a couple of unrelated data, nonetheless actually really worth taking a appear, whoa did 1 study about Mid East has got a lot more problerms too […]
I’m truly enjoying the design and style and layout of your weblog. It’s a very effortless on the eyes which makes it much a lot more pleasurable for me to arrive listed here and visit a lot more often. Did you retain the services of out a developer to…
I completely adore your site and uncover a good deal of your post’s to be just I’m hunting for. Does a single offer you guest writers to write content available for you? I would not thoughts making a post or elaborating on a few of the subjects you wri…
[…]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless truly really worth taking a search, whoa did one particular study about Mid East has got far more problerms at the same time […]
[…]that could be the end of this article. Right here you will discover some web pages that we feel you will appreciate, just click the hyperlinks over[…]
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.
Title
[…]always a massive fan of linking to bloggers that I enjoy but do not get a great deal of link like from[…]
Indian Hair Wholesale
[…]always a major fan of linking to bloggers that I really like but really don’t get a great deal of link love from[…]
Title
[…]Sites of interest we’ve a link to[…]
Title
[…]we prefer to honor numerous other web web sites around the internet, even though they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]
mejor cancion para una mujer
[…]Wonderful story, reckoned we could combine a few unrelated data, nevertheless really really worth taking a search, whoa did one understand about Mid East has got a lot more problerms also […]
tratamiento adicciones
[…]we came across a cool site that you just could appreciate. Take a search if you want[…]
Title
[…]Wonderful story, reckoned we could combine a couple of unrelated data, nonetheless actually really worth taking a appear, whoa did 1 study about Mid East has got a lot more problerms too […]
find a hacker
[…]just beneath, are a lot of absolutely not connected internet sites to ours, on the other hand, they may be surely really worth going over[…]
ร้านผ้าญี่ปุ่น
????????????? ??????????????????? ????????????? ?????????????????????????????????????
دوربین مدار بسته وایرلس
I’m truly enjoying the design and style and layout of your weblog. It’s a very effortless on the eyes which makes it much a lot more pleasurable for me to arrive listed here and visit a lot more often. Did you retain the services of out a developer to…
Law enforcement black duty boots
[…]the time to read or visit the content or web sites we’ve linked to beneath the[…]
دوربین دنده عقب
I completely adore your site and uncover a good deal of your post’s to be just I’m hunting for. Does a single offer you guest writers to write content available for you? I would not thoughts making a post or elaborating on a few of the subjects you wri…
Title
[…]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless truly really worth taking a search, whoa did one particular study about Mid East has got far more problerms at the same time […]
piala dunia 2018
[…]that could be the end of this article. Right here you will discover some web pages that we feel you will appreciate, just click the hyperlinks over[…]
دوربین مدار بسته آنالوگ
Thanks once more for the blog publish.Actually thank you! Great.