Opinions
Stuart Hinshelwood
EMC Corp
EMC-N
COMMENT
Nov 01, 2013
Stock price when the opinion was issued
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This is not unlike a lot of the large cap tech stocks. They made so much money and were so good at what they did, but technology always changes, and there is always the question about if the company is still relevant. Because of that, she has seen very compelling valuations across the board on the large cap technology space. Seeing some positive momentum and thinks this is a good thing to own.
Long-term hasn’t been a bad trend as the lows are getting higher. He would pay attention to current trends. You don’t want to see it break much below $25. Chart shows a consolidation with the highs gradually getting lower, while the lows basically stay in place. This is a descending triangle, which is actually a consolidation. You can’t tell ahead of time which way it is going to break out, but if it breaks to the upside above $28, it could be a great stock, but if it breaks below $25, it could be a terrible story. This is in limbo right now. He would probably hold it a little while longer to see what happens.
Frustrating stock on a year to date basis. Still a negative return here. Looking at the quarter, the thesis really hasn’t changed. You have a large company, playing in the storage space and building out a data analytics business, securities business. Likes the stock. Valuation is okay at about 12X earnings. The problem is that there is relatively little IT spending on an enterprise level. With the pullback in the US government, that is a big vertical for them. If you have a longer term outlook, more than a year, this would be a good name to own. In the medium-term, the stock is fairly negative.