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)
A villa was at first an historic Roman higher-course place residence. Given that its origins in the Roman villa, the thought and purpose of a villa have evolved substantially. After the fall of the Roman Republic, villas turned small farming compounds,…
An Apple ID is the individual account you use to entry Apple solutions like the Application Retailer, iTunes Store, iCloud, iMessage, the Apple Online Retailer, FaceTime, and more. It contains the email handle and password you use to signal in, as prop…
[…]although web-sites we backlink to beneath are considerably not associated to ours, we really feel they may be actually worth a go through, so possess a look[…]
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
[…]Sites of interest we’ve a link to[…]
Title
[…]Sites of interest we have a link to[…]
Title
[…]Every once in a while we opt for blogs that we read. Listed beneath would be the most recent sites that we pick out […]
kala jadu
[…]just beneath, are quite a few completely not associated web sites to ours, having said that, they’re surely worth going over[…]
Title
[…]please pay a visit to the web-sites we comply with, which includes this 1, because it represents our picks from the web[…]
Title
[…]The information mentioned in the article are several of the most beneficial available […]
Title
[…]that would be the end of this report. Right here you’ll discover some web sites that we think you will value, just click the hyperlinks over[…]
couples sex toys
[…]we came across a cool web-site which you might take pleasure in. Take a look for those who want[…]
realistic dildo
[…]Here are a few of the web-sites we advise for our visitors[…]
Title
[…]here are some links to web sites that we link to simply because we consider they’re worth visiting[…]
p spot stimulation
[…]below you will locate the link to some web sites that we believe you should visit[…]
وب سایت اجاره ویلا در شمال و رامسر و کر…
A villa was at first an historic Roman higher-course place residence. Given that its origins in the Roman villa, the thought and purpose of a villa have evolved substantially. After the fall of the Roman Republic, villas turned small farming compounds,…
وب سایت فروش اپل ایدی معتبر آمریکا
An Apple ID is the individual account you use to entry Apple solutions like the Application Retailer, iTunes Store, iCloud, iMessage, the Apple Online Retailer, FaceTime, and more. It contains the email handle and password you use to signal in, as prop…
vibrators
[…]although web-sites we backlink to beneath are considerably not associated to ours, we really feel they may be actually worth a go through, so possess a look[…]
Title
[…]just beneath, are quite a few totally not related websites to ours, having said that, they’re surely worth going over[…]