Switch to:

Latest Guru Trades with EMC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Dodge & Cox 2014-03-31 Add 492.14%0.44%$23.66 - $28.18 $ 28.339%18918850
PRIMECAP Management 2014-03-31 Add 29.21%0.25%$23.66 - $28.18 $ 28.339%34948089
George Soros 2014-03-31 New Buy0.1%$23.66 - $28.18 $ 28.339%360490
Joel Greenblatt 2014-03-31 Reduce -30.63%0.09%$23.66 - $28.18 $ 28.339%337553
Ray Dalio 2014-03-31 Reduce -45.46%0.04%$23.66 - $28.18 $ 28.339%241062
David Dreman 2014-03-31 New Buy0.02%$23.66 - $28.18 $ 28.339%8836
Scott Black 2013-12-31 Sold Out 1.3%$23.15 - $25.72 $ 28.3317%0
Joel Greenblatt 2013-12-31 Add 109.1%0.15%$23.15 - $25.72 $ 28.3317%486601
Arnold Van Den Berg 2013-12-31 New Buy0.09%$23.15 - $25.72 $ 28.3317%37745
Dodge & Cox 2013-12-31 New Buy0.08%$23.15 - $25.72 $ 28.3317%3194980
Jean-Marie Eveillard 2013-12-31 Sold Out 0.03%$23.15 - $25.72 $ 28.3317%0
Charles Brandes 2013-12-31 Add 31.99%0.03%$23.15 - $25.72 $ 28.3317%460431
Lee Ainslie 2013-09-30 Sold Out 0.81%$23.78 - $27.04 $ 28.339%0
Jean-Marie Eveillard 2013-09-30 Reduce -84.5%0.17%$23.78 - $27.04 $ 28.339%429756
Ray Dalio 2013-09-30 Reduce -47.72%0.08%$23.78 - $27.04 $ 28.339%429562
Joel Greenblatt 2013-09-30 Add 43.36%0.06%$23.78 - $27.04 $ 28.339%232710
Lee Ainslie 2013-06-30 Reduce -76.74%2.61%$21.5 - $24.99 $ 28.3320%2521892
Scott Black 2013-06-30 Add 26.25%0.27%$21.5 - $24.99 $ 28.3320%455012
Charles Brandes 2013-06-30 New Buy0.1%$21.5 - $24.99 $ 28.3320%335177
Jean-Marie Eveillard 2013-06-30 Add 71.88%0.08%$21.5 - $24.99 $ 28.3320%2772942
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on EMC Corp

David Rolfe Comments on EMC - Jan 27, 2014

EMC (EMC)’s stock was flat over the course of 2013.  In fact, the stock has been flat over the past three years – sigificantly underperforming the near 50% gain in the S&P 500 Index.  The stock has been buffetted over fears that the Company’s current decelerated growth is in secular decline due to a number of competitive threats.  The first threat is that flash storage and software-defined storage will cannibalize traditional hard disk drives.  Two, the public cloud is only a threat (and not an opportunity) that disintermediates information technology (IT) spend from both EMC and VMware (EMC maintains an over 80% ownership stake in VMW).  Third, VMware’s entrenched vSphere gets displaced by Open-Source and Microsoft’s Hyper-V.  Fourth, recent premium-priced acquisitions of Data Domain and Isilon are evidence of lack of internal product development.

EMC’s products – both hardware and software - are litearlly a geek’s wonderland alphabet soup, which include Storage Area Network (SAN), Network Attached Storage (NAS), Direct Attached Storage (DAS), Virtual SAN, All-Flash XtremIO, Atmos, Avamar,  Data Domain, Isilon, Pivotal, ViPR Software Defined Storgae, VMAX, VNX, VNXe, VPLEX, VSPEX (none of these are typos).  Information storage makes up 70% of revenues and virtualization 23% of revenues.  Products generate 55% of revenues.  Services generate 45% of revenues.  The Company’s gross profit split is approximaltey 67% data storage and 31% virtualization.

The bear case on the Company has been so relentless as to render EMC a “broken growth company.”  Indeed, the stock’s forward P/E is just 11.5X.  In addition, if you exclude the Company’s 80% stake in VMware ($30 billion – cost of all of VMW in 2003 just $635 million) and net cash ($8.5 billion), the remaining EMC business “stub” is valued at only 4-5X earnings.  Mr. Market has thus concluded the Company’s entrenched ecosystem; sticky customers and unparalleled distribution (direct sales force) are of little value.  In addition, such an undemanding valuation assumes further that the Company’s key new products such as Pivotal (“the Android operating system of cloud computing”), XtremeIO and ViPR will never ramp-up quickly in the hundreds of millions of dollars.  On the contrary, we expect EMC to post consolidated revenue growth in the mid-to-high single digits, with modestly expanding margins – mostly thanks to VMware’s relentless push deeper into data center virtualization and automation.  Further, the stock’s attractiveness has not gone unnoticed as the Company recently announced a new dividend and multibillion stock buyback.  These factors should combine to generate the double-digit bottom-line growth we expect over the next few years.  In our view the stock’s downside over the next year or so is just -10%, while the prospective upside to fair vale is +33%.  

 

From David Rolfe (Trades, Portfolio)’s Wedgewood Partners Fourth Quarter 2013 Commentary.

Check out David Rolfe latest stock trades

Wedgewood Partners David Rolfe Comments on EMC - Jul 19, 2013

During the quarter, we increased our weighting in EMC Corp. (EMC) after the stock had been flat over the trailing 12 months, compared to the over 20% run up in the S&P 500 Index. Combined with EMC's double digit free cash flow generation, the stock has gotten cheaper, in our view, through benign neglect. Much of the neglect stems from perceived threats to EMC's role in enterprise data centers. However, as a developer of IT infrastructure, it is normative for EMC to face competition from disruptive new technologies and workflows, especially at the enterprise scale. For example, just a few years ago, EMC's most relevant competitors seemed to be Hewlett Packard, Dell, IBM and NetApp, whereas today, Amazon and a host (no pun intended) of other players in the acronym heavy cloud services industry are more apt at competing with EMC for a dollar of profitability. However, across our multi year holding period, one of the most powerful competitive advantages at EMC has been its robust distribution network. While not nearly as exciting as the technology that gets distributed, EMC's distribution advantage p resents formidable barriers to entry for bot h legacy and new competitors. T he Company can rapidly scale emerging technologies across an unparalleled, information infrastructure focused direct sales force and customer base that is over half a million and g rowing. Of course, most of EMC's competitors know this, but cultivating several hundred thousand points of sale is "easier said, than done." For instance, in 2009, EMC purchased a competitor Data Domain and its roughly $300 million in annual revenues. Not quite four years later, EMC's Data Domain unit is generating revenues at an over $1.5 billion annual run rate (over 400% growth). In a similar vein, during 2010 EMC purchased Isilon Systems, a competitor in scale out storage with roughly $200 million in annual revenues. Less than three years later, this EMC unit is generating revenue at an over $1 billion annual run rate ( again, over 400% growth). It is not clear if these companies would have been able to grow this quickly as standalone competitors that did not have access to EMC's distribution network. What is clear is that significant value was generated for EMC clients and shareholders, thanks to this distinct advantage.

As for VMware (EMC holds a significant ownership share in VMW), after several years of enabling, at least, primitive versions of private clouds for more than 500,000 customers worldwide (including 100% of the Fortune 100), investors are concerned that the proliferation of open source substitutes and public cloud alternatives wil l significantly erode the Company's future earnings power. VMware trades at a historic ally low valuation (a low teen enterprise value to free cash flow multiple, which is half to one third of its recent range), but we think its longer term growth and prof itability prospects are not as dire as the market is implying. While the natural progression for smaller and mid sized business ("SMB") IT departments seems to be the utilization of lower cost, subscription based public cloud services, this will not likely be a winner take all market, especially since EMC has aggressively established itself in the "channel" which is the network of thousands of value added resellers and consultants to SMB IT departments. Further, VMware has a several year head start in cultivating a developer ecosystem, with several thousand applications, many of them mission critical, explicitly supported. In the interim, VMware's product scope is rapidly expanding, thanks to robust reinvestment, where their expertise in abstraction technology puts them at the "tip of the arrow" as data centers become more dependent on the software layer. Further, the value proposition of the public cloud is less robust for larger enterprises, especially those that have long established investments in on site infrastructure, so we believe the barriers to entry into this market segment by VMware rivals and substitutes will be much higher, relative to SMB. In the future, we expect EMC (and VMware) to maintain its competitive positioning in the perpetually changing technology infrastructure industry by continuing to dedicate significant resources towards expanding their product scope – both through acquisition and organically and then maximizing those investments by leveraging their expansive distribution capabilities. So while we recognize the highly competitive nature of enterprise IT innovation, we believe that there is substantial future growth and value still to be recognized in our EMC investment.

From Wedgewood Partners' second quarter 2013 investor letter.

Check out David Rolfe latest stock trades

Top Ranked Articles about EMC Corp

Centaur Capital's Fourth Quarter Portfolio Reports Heavy Selling and Top Five Positions
Zeke Ashton of Centaur Capital Partners keeps a fairly concentrated portfolio valued at $86 million. The guru had a heavier quarter in selling as he sold out of ten of his previous holdings. The guru added eight new stocks to his holdings, bringing his portfolio to 29 stocks. The following five companies represent Ashton’s top five holdings. Read more...
David Rolfe Comments on EMC
EMC (EMC)’s stock was flat over the course of 2013.  In fact, the stock has been flat over the past three years – sigificantly underperforming the near 50% gain in the S&P 500 Index.  The stock has been buffetted over fears that the Company’s current decelerated growth is in secular decline due to a number of competitive threats.  The first threat is that flash storage and software-defined storage will cannibalize traditional hard disk drives.  Two, the public cloud is only a threat (and not an opportunity) that disintermediates information technology (IT) spend from both EMC and VMware (EMC maintains an over 80% ownership stake in VMW).  Third, VMware’s entrenched vSphere gets displaced by Open-Source and Microsoft’s Hyper-V.  Fourth, recent premium-priced acquisitions of Data Domain and Isilon are evidence of lack of internal product development. Read more...
EMC Update - Numerous Billionaires Hold, Three Gurus Reduce in Third Quarter
Three billionaires reduced EMC Corporation (EMC) in the third quarter, but a large group of billionaires remains heavily invested in the global data storage company, and here’s why. EMC has invested $17 billion in acquisitions in the last 10 years, integrating more than 70 technology companies to strengthen their core business and extend their reach to 86 countries. The company’s revenue growth is 14.80% over 10 years and 6.70% over 12 months. EMC’s EBITDA growth rate is 18.80% over 10 years and 5.40% over 12 months, and its book value growth is 9.50% over 10 years and 9.60% over 12 months, all based on annual rates per share. Furthermore, as a Fortune 500 company, EMC Corporation ranks 139th, and the company had its record revenue year in 2012, with reported revenue at $21.7 billion. EMC has around 400 sales offices and employs approximately 60,000 people worldwide. Read more...
» More Articles for EMC

Ratios

vs
industry
vs
history
P/E(ttm) 22.30
EMC's P/E(ttm) is ranked higher than
71% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 31.90 vs. EMC: 22.30 )
EMC' s 10-Year P/E(ttm) Range
Min: 12.95   Max: 143.47
Current: 22.3

12.95
143.47
P/B 2.50
EMC's P/B is ranked lower than
51% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 1.65 vs. EMC: 2.50 )
EMC' s 10-Year P/B Range
Min: 1.45   Max: 4.33
Current: 2.5

1.45
4.33
P/S 2.59
EMC's P/S is ranked lower than
57% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 1.00 vs. EMC: 2.59 )
EMC' s 10-Year P/S Range
Min: 1.35   Max: 5.61
Current: 2.59

1.35
5.61
PFCF 11.90
EMC's PFCF is ranked higher than
86% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 83.39 vs. EMC: 11.90 )
EMC' s 10-Year PFCF Range
Min: 7.88   Max: 38.13
Current: 11.9

7.88
38.13
EV-to-EBIT 13.94
EMC's EV-to-EBIT is ranked higher than
78% of the 2659 Companies
in the Global Data Storage industry.

( Industry Median: 23.82 vs. EMC: 13.94 )
EMC' s 10-Year EV-to-EBIT Range
Min: 9.6   Max: 581.2
Current: 13.94

9.6
581.2
PEG 1.20
EMC's PEG is ranked higher than
90% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 9999.00 vs. EMC: 1.20 )
EMC' s 10-Year PEG Range
Min: 0.55   Max: 3.37
Current: 1.2

0.55
3.37
Shiller P/E 28.00
EMC's Shiller P/E is ranked higher than
89% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 9999.00 vs. EMC: 28.00 )
EMC' s 10-Year Shiller P/E Range
Min: 18.24   Max: 79.92
Current: 28

18.24
79.92
Current Ratio 1.52
EMC's Current Ratio is ranked lower than
51% of the 2532 Companies
in the Global Data Storage industry.

( Industry Median: 1.96 vs. EMC: 1.52 )
EMC' s 10-Year Current Ratio Range
Min: 0.94   Max: 6.54
Current: 1.52

0.94
6.54
Quick Ratio 1.36
EMC's Quick Ratio is ranked higher than
58% of the 2532 Companies
in the Global Data Storage industry.

( Industry Median: 1.44 vs. EMC: 1.36 )
EMC' s 10-Year Quick Ratio Range
Min: 0.79   Max: 5.37
Current: 1.36

0.79
5.37

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.46
EMC's Dividend Yield is ranked lower than
52% of the 1660 Companies
in the Global Data Storage industry.

( Industry Median: 1.66 vs. EMC: 1.46 )
EMC' s 10-Year Dividend Yield Range
Min: 0.37   Max: 1.57
Current: 1.46

0.37
1.57
Dividend Payout 0.32
EMC's Dividend Payout is ranked higher than
88% of the 2659 Companies
in the Global Data Storage industry.

( Industry Median: 9999.00 vs. EMC: 0.32 )
EMC' s 10-Year Dividend Payout Range
Min: 0.21   Max: 0.53
Current: 0.32

0.21
0.53
Yield on cost (5-Year) 1.50
EMC's Yield on cost (5-Year) is ranked lower than
56% of the 1696 Companies
in the Global Data Storage industry.

( Industry Median: 1.80 vs. EMC: 1.50 )
EMC' s 10-Year Yield on cost (5-Year) Range
Min: 0.37   Max: 1.57
Current: 1.5

0.37
1.57
Share Buyback Rate -0.20
EMC's Share Buyback Rate is ranked higher than
77% of the 1325 Companies
in the Global Data Storage industry.

( Industry Median: -0.90 vs. EMC: -0.20 )
EMC' s 10-Year Share Buyback Rate Range
Min: 5.1   Max: -4.7
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 11.00
EMC's Price/Tangible Book is ranked lower than
65% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 1.98 vs. EMC: 11.00 )
EMC' s 10-Year Price/Tangible Book Range
Min: 1.52   Max: 30.9
Current: 11

1.52
30.9
Price/DCF (Projected) 0.80
EMC's Price/DCF (Projected) is ranked higher than
95% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 9999.00 vs. EMC: 0.80 )
EMC' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 16.36
Current: 0.8

0.58
16.36
Price/Median PS Value 0.90
EMC's Price/Median PS Value is ranked higher than
83% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 1.17 vs. EMC: 0.90 )
EMC' s 10-Year Price/Median PS Value Range
Min: 0.01   Max: 9.94
Current: 0.9

0.01
9.94
Price/Peter Lynch Fair Value 1.20
EMC's Price/Peter Lynch Fair Value is ranked higher than
95% of the 2659 Companies
in the Global Data Storage industry.

( Industry Median: 9999.00 vs. EMC: 1.20 )
EMC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.73   Max: 9.4
Current: 1.2

0.73
9.4
Price/Graham Number 3.10
EMC's Price/Graham Number is ranked higher than
58% of the 2660 Companies
in the Global Data Storage industry.

( Industry Median: 2.38 vs. EMC: 3.10 )
EMC' s 10-Year Price/Graham Number Range
Min: 1.35   Max: 14.34
Current: 3.1

1.35
14.34
Earnings Yield (Greenblatt) 7.20
EMC's Earnings Yield (Greenblatt) is ranked higher than
70% of the 2169 Companies
in the Global Data Storage industry.

( Industry Median: 6.40 vs. EMC: 7.20 )
EMC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 10.4
Current: 7.2

0.2
10.4
Forward Rate of Return (Yacktman) 24.10
EMC's Forward Rate of Return (Yacktman) is ranked higher than
91% of the 1567 Companies
in the Global Data Storage industry.

( Industry Median: 3.05 vs. EMC: 24.10 )
EMC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 3.1   Max: 202.1
Current: 24.1

3.1
202.1

Business Description

Industry: Computer Hardware » Data Storage
Compare:WDC, STX, NTAP, SNDK, STEC » details
Traded in other countries:EMP.Germany
EMC Corporation is a Massachusetts corporation, incorporated in 1979. The Company and its subsidiaries develop, deliver and support the Information Technology industry's a range of information infrastructure and virtual infrastructure technologies and solutions. The Company manages its business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. The Company's Information Infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure their vast and ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. VMware Virtual Infrastructure, represented by the Company's majority equity stake in VMware, Inc. provides virtualization infrastructure solutions. The Company's Information Infrastructure business comprises three segments - Information Storage, RSA Information Security and Information Intelligence Group. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX storage and a portfolio of backup products that support a wide range of enterprise application workloads. Its two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. The Company's storage systems can be deployed in storage area networks, networked attached storage, and unified storage combining NAS and SAN, object storage and/or direct attached storage environments. The Company has a portfolio of next-generation disk-based backup and recovery solutions, which includes EMC Avamar deduplication backup software and system, EMC Data Domain deduplication storage systems, EMC NetWorker unified backup and recovery software and EMC Disk Library for mainframe products, among others. The Company competes with many companies in the markets it serves, including companies that offer a spectrum of IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services. As a multinational corporation, the Company is subject to income taxes in both the United States and various foreign jurisdictions.
» More Articles for EMC

Headlines

Articles On GuruFocus.com
Some Reasons to Buy This Data Player for Your Portfolio Jul 21 2014 
Manning & Napier Report Top Five Holdings Jul 18 2014 
VMWare Could Be a Long-Term Buy Jul 16 2014 
VMware Is a Solid Play to Benefit From Growth in the Cloud Jun 23 2014 
EMC Is All Set to Profit From Growing Data Storage Solutions Jun 20 2014 
EMC: This Stock Can Help You Profit from Enterprise Cloud Growth May 30 2014 
Wedgewood Partners' David Rolfe's Top Five Stocks May 28 2014 
EMC: A Cloud Play For Your Portfolio Apr 30 2014 
The Best Technology I've Ever Seen Apr 28 2014 
Manning & Napier Report First Quarter Top Stocks Apr 22 2014 

More From Our Partners
Can EMC Corp. (EMC) Surprise This Earnings Season? - Analyst Blog Jul 21 2014 - ZACKS

More From Other Websites
[video] Elliott Ready to Split VMWare from EMC: Chart of the Day Jul 22 2014
EMC, with Elliott Management at the door, braces for a showdown Jul 22 2014
The Morning Download: EMC Breakup Battle Could Lead to Consolidation of Tech Suppliers Jul 22 2014
Elliot Management to consider activist options for EMC, NY Times reports Jul 22 2014
[$$] At EMC, Marriage Requires Investment Jul 21 2014
[$$] EMC's Business Approach Faces Test Jul 21 2014
RSA® Web Threat Detection Adds Enhanced Visibility & Analytics; Takes on Mobile Fraud Jul 21 2014
RSA's Coviello Calls for Security Industry to Abandon Fear and Trepidation Jul 21 2014
EMC Insurance Group Inc. Announces Second Quarter Operating Loss and Combined Ratio Estimates,... Jul 21 2014
Activist wants EMC breakup Jul 21 2014
Can EMC Corp. (EMC) Surprise This Earnings Season? Jul 21 2014
[video] Markets End Lower on Geopolitical Worries, Q2 Results Due Jul 21 2014
[video] The Top Ten Stocks for July 21 Jul 21 2014
Six Flags and Hasbro are big market movers Jul 21 2014
On The Fly: Closing Wrap Jul 21 2014
Why EMC (EMC) Stock Continues To Surge Today Jul 21 2014
TCO for Software Defined Storage -- Known or Unknown? Jul 21 2014
The Purpose Of EMC's Equity Games Jul 21 2014
EMC Analysts Not Expecting A Spinoff Jul 21 2014
EMC / VMware: theory of relativity Jul 21 2014

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide