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Thursday, October 20, 2005

EMC follows Datalink (DTLK) this week

Hope you saw my earlier post commenting on Datalink's earnings results and management comments discussing a potential technology "refresh" at the storage infrastructure level for enterprises. (Translation: Companies are redoing their storage/disk drive set-ups and buying new, more integrated platforms.)
If you did and you bought EMC, you'd be up almost 5% for the week (6% to high this morning).
Don't fret if didn't though, I think this story has legs. Technology "refreshes" last for awhile and given that EMC reported higher earnings and growing margins...storage will be a good place to be for awhile. I mean really, a $33Billion dollar company showing 17% YoY revenue growth?!? That's like have a big man center with ball-handling skills.
Music from the earnings release:

"EMC said each of its major business segments posted double-digit gains in percentage terms over the comparable quarter a year ago, driven in part by new product additions to its Clariion and Symmetrix networked-storage systems.

"We're in the midst of the most robust wave of new product introductions in our history, and customer response to our new products has been outstanding," Tucci said."


Speaking of storage...it might be a good time to pick up some Symantec now that they're a major storage vendor and their valuation is deeply depressed by Microsoft security offering concerns. For the record, ain't no decent enterprise gonna trust Microsoft with security -- trust me on that one! It might be early as Symantec clearly has a lot of integration left on its hands considering they just picked up BindView as well, but I think the Veritas acquisition could serve them very well.

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