EMC Stuck in the Clouds

EMC Corporation develops and supports information and virtual infrastructure technologies and solutions. EMC Corporation markets its products through direct sales and through multiple distribution channels around the world. The company was founded in 1979 and is headquartered in Hopkinton, Massachusetts.

[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'EMC'" symbolprices="27" div_align="right"]

• We first bought EMC in November 2012 at $24.40 and waited patiently for valuations to pick up, unfortunately the outlook for the storage business has gotten worse as the proliferation of cloud applications has intensified competition to this industry.

• Purple Chips 12 -18 month target: $29.00

• EXITING EMC AT $26.85 (EMC-US) FULL POSITION

• TOTAL RETURN: +13.2%

PURPLE CHIPS TARGET: $29.00 POSITION SIZE: FULL (5.0%) P/E: 14X DIV: $.46 (1.7%) MKT CAP: $52B Cash:$8B RETURN ON CAPITAL: 53.9% EARNINGS YIELD: 9.0% 5 YR EPS Growth rate*:14.0% P/E/G Ratio: 1.00X EPS: $1.87 2016 EST.: $2.12 2017 EST.: $2.33

*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.