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Best of the Best: Today's Top Investment Ideas
Store up on EMC Corp. (EMC) Print E-mail Digg It!
Thursday, 08 May 2008

 Data storage firm EMC Corp. (NYSE: EMC) is a buy from growth stock expert Toby Smith, who consider the stock an industry "dominator". Here's the latest from ChangeWave Investing.

"We believe EMC is primed for an upturn. The company recently reported Q1 EPS of 7 cents, beating the First Call consensus by 1 cent. Revenues rose by nearly 17% to $3.47 billion, in line with the consensus.

"During its conference call, EMC's management said it does not expect the economic environment to get easier any time soon, but that virtualization, information security and storage are top 2008 spending priorities for enterprises.

"Despite weakness in the financial vertical, EMC still experienced North American growth of 9%, and it continues to benefit from strong growth in emerging markets.

"Based on several internal investments (e.g., sales and R&D), EMC said that when the economy does turn, it will be even further ahead of its competition.

"The company states that its strongest customers continue to add to their IT spending to expand their competitive advantage over weaker competitors, who may need to cut back in this environment.

"Regarding 86%-owned VMware (NYSE: VMW), the company says they absolutely have no plans to divest its investment at this time.

"Shares of industry dominators such as EMC have been weak for a while, but we expect both companies will be strong performers as the economy recovers from its worst levels. It's worth being early to this party."



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