EMC Corporation (EMC), involved in development, delivery and support of information infrastructure, is traded on NYSE and is one bull among the bears.
I recommended EMC to one of my close friends this summer and since then EMC has shown a solid upward movement (except in November - the story of every stock). This recent dip presents a great opportunity to load EMC in your portfolio.
Technical Analysis:
EMC stock price moved sideways for the last 3 years, but has had a very good run (more than 50% gains) in the past one year. The % increase in stock price in next 1 year is estimated to be 2%, which is very low. However, the much-anticipated spin-off of VMware has been a huge success and I would not be surprised if EMC stock prices pound the estimates.
Fundamental Analysis:
EMC has a strong balance sheet. Also, EMC has better profit margins and revenue growth than the rest of the industry. However, when compared to its competitors, EMC shares have a higher PE and thus are more expensive.
Another parameter, corporate governance quotient (CGQ) indicating the relative strength of the management is one of the important parameters that long-term investors consider. EMC CGQ is better than 85% of S&P500 companies and better than 98% of the technology hardware and equipment companies.
Bottom line, BUY EMC at any dip.
I recommended EMC to one of my close friends this summer and since then EMC has shown a solid upward movement (except in November - the story of every stock). This recent dip presents a great opportunity to load EMC in your portfolio.
Technical Analysis:
EMC stock price moved sideways for the last 3 years, but has had a very good run (more than 50% gains) in the past one year. The % increase in stock price in next 1 year is estimated to be 2%, which is very low. However, the much-anticipated spin-off of VMware has been a huge success and I would not be surprised if EMC stock prices pound the estimates.
Fundamental Analysis:
EMC has a strong balance sheet. Also, EMC has better profit margins and revenue growth than the rest of the industry. However, when compared to its competitors, EMC shares have a higher PE and thus are more expensive.
Another parameter, corporate governance quotient (CGQ) indicating the relative strength of the management is one of the important parameters that long-term investors consider. EMC CGQ is better than 85% of S&P500 companies and better than 98% of the technology hardware and equipment companies.
Bottom line, BUY EMC at any dip.
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