![]() Because of its mid-cap focus, it is also somewhat different from the typical Wasatch funds that favor small-cap stocks. That is because the overall market has favored cyclical commodity and industrial plays rather than the solid, long-term businesses that it emphasizes. Is there hope? - M.C., via the InternetĪ: It has struggled versus its peers since its 2004 inception. Q: I've been disappointed in Wasatch Heritage Growth Fund. ![]() The five-year annualized return is expected to be 15 percent, which is in line with its industry. Next year's projected 19 percent rise compares with 26 percent forecast for its peers. ![]() There is plenty of money to spend on new products, acquisitions and stock buybacks.Įarnings are expected to increase 28 percent this year versus the 6 percent predicted for the data-storage-device industry. But EMC has a strong balance sheet, with about $6 billion in cash and $3.45 billion in convertible debt. There is always pricing pressure and the possibility of component shortages in the storage field. This is another hot area in the storage field. EMC's substantial stake in VMware adds appeal to EMC shares.ĮMC also agreed to spend an undisclosed sum to buy privately held Tablus Inc., whose business is the prevention of data leaks from corporate networks. VMware's "virtual" software, enabling one piece of hardware to run multiple operating-system images at the same time, reduces processing power costs. It purchased VMware in 2004 for $625 million and must retain a controlling stake for five years so EMC shareholders avoid a taxable gain on the acquisition. That consists of six "strong buys," 12 "buys" and nine "holds."įollowing the successful initial public offering of VMware Inc., EMC retains an 89 percent stake in that company. The consensus rating of EMC stock by Wall Street analysts is "buy," according to Thomson Financial. Management expects the solid second half to be somewhat better than initially expected. Second-quarter profit was up nearly 20 percent, and it was the fourth consecutive quarter that the company exceeded earnings estimates. The company is close to completing its planned $1 billion stock repurchase this year. (EMC) are up 45 percent this year, following declines of 3 percent last year and 8 percent in 2005. Although Asia remains its strongest sales region, North America lately has made some significant gains. Sales of software licenses have been robust, and the company's large installed-customer base helps in this highly competitive field. 1 provider of data-storage hardware, software and services is benefiting from strong industry spending on storage, which is expected to continue for the next several years. What do you think of this stock? - M.B., via the InternetĪ: The No. I've noticed that it is an actively traded stock and the share price has gone up.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |