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Big deal: DELL, EMC TO EXPAND LINE .

Big deal: DELL, EMC TO EXPAND LINE .
ROBERT WEISMAN
114 words
13 January 2006

Computer giant Dell Inc. plans to expand its alliance with Hopkinton's EMC Corp. in the data storage equipment business, Kevin B. Rollins, Dell's president, said yesterday after addressing Boston College's Chief Executives Club.

Rollins, a former Boston-based management consultant for Bain Inc., said Dell and EMC agreed last month to roll out a new line of cobranded storage products this summer across a broad range of markets.

The two companies have been offering cobranded storage gear only in the midrange market, although Dell also resells high-end EMC products. EMC last fall said the Dell partnership represented 11 percent of its revenues.

IMO: this is what the analysts expecting for. Dell expand its data storage with EMC will bring EMC tremedous revenue in 2006. Check back my previous research on EMC and you will find that investors are waiting for this badly. Finally Dell agree to expand the business with EMC.
 
EMC on the bottom now, two days flat price move with large volume showing the MM is b

EMC on the bottom now, two days flat price move with large volume showing the MM is building its position here. With all the good news from analysts and contracts, we will see EMC move higher since next week.

http://www.forbes.com/2006/01/13/he...echnology-0113markets07.html?partner=yahootix

EMC (nyse: EMC - news - people ) also remains one of the analyst's top picks. "A multiple drop of 9 points in 2005 should put EMC in a position to finally capture most of its earnings growth, with the multiple, for the first time in the last three years, finally below EMC's normalized earning growth, yielding stock appreciation of at least 20%," the analyst noted.
 
Hillman's focus on the long term means watching for trends. He likes computer storage

Hillman's focus on the long term means watching for trends. He likes computer storage and data management companies because of increasing regulatory pressure to store and recall original data. His favorite is EMC (nyse: EMC - news - people ), with its 20% market share. "To compete in this space you really need secure, end-to-end solutions," Hillman says. "EMC has had a few years' lead on every competitor."

Hardware. Health care. Homebuilders. Mark Hillman pinpoints undervalued companies in a variety of industries that his firm believes will become leaders in the long run.

Same as my pick. EMC: Hardware, Healthcare: HLTH, Homebuilders: CHB, FLE.

http://www.forbes.com/2006/01/18/hi...rl_0118streettalklander.html?partner=yahootix
 
RES: my target is around $40-50, oilfield equipment companies on average traded aroun

RES: my target is around $40-50, oilfield equipment companies on average traded around $50. RES is a very solid company with wide business moat. When oil price goes up, RES up. When oil price down, RES stable. RES is not like those pure oil stocks, such as ABLE, GEOI, NGAS which are sensitive to oil price and risky. RES is relative stable and less volatility.

I picked RES when it was $23. You can not find a better oilfield company better than it.
 
In TUES here. Technical favor trade.

In TUES here. Technical favor trade.
With the holidays come and gone, retailers have passed their biggest rush of the year. What remains is often overstocked and out of style. Last week, the top-performing stock pickers at Marketocracy bought shares of Tuesday Morning, which sells closeout merchandise, gifts and housewares, in its retail stores.

Tuesday Morning at $20.66 per share, or 13.9-times earnings, is trading at its cheapest levels of the year. The company's early January announcement that its fourth-quarter same-store sales were down 5.3% and its earnings per share were down 4.5% to 84 cents per share didn't help matters much. But on that news, the stock price only dipped below $20 for one day before snapping back--showing strong resistance. With resistance on bad news and with the closeout-merchandise season starting, the M100 opened a sizable new position in the stock.
 
TUES Morningstar Rating 5 stars (Strong Buy)

TUES Morningstar Rating 5 stars (Strong Buy)
01-18-2006


Stock Price
As of 12-06-2005
$26.04

Fair Value Estimate

$28.00

Consider Buying

$21.60

Consider Selling

$35.10

Here is the analyst report from MorningStar, share with you guys. The reason I pick TUES is majorly from TA chart. With 10% short interest, and $20 level showing strong support, I believe stock price will rebounce from here. I do not have a target at this point, but definately around $28

"Tuesday Morning is the sole national closeout retailer of first-quality, brand-name home furnishings. The company has built up a large, upscale customer base through its unique strategy of offering attractive items at compelling prices in stores that are open only during periodic three- to five-week sale events.

While Tuesday Morning's stores consistently offer the same merchandise categories, limited quantities of each product are available at each sale, creating a "treasure hunt" environment. In addition, Tuesday Morning's long operating history and strong balance sheet make it the closeout retailer of choice for many of its suppliers. We think that the company's brand name recognition, loyal shoppers, and close supplier relationships provide it with a narrow economic moat.

Tuesday Morning's unique business model goes beyond just its value prices and sales events. By keeping stores closed during the slow January and July selling periods and between sales events, locating them in strip malls and other low-rent areas, and using Spartan fixtures, the company keeps operating costs extremely low.

Tuesday Morning's financial results are evidence of this strategy's success. Over the past five years, annual sales growth has averaged 13%, as the company has expanded its store base at a 12% average annual rate. Tuesday Morning believes the United States can support at least 1,000 of its stores. Although we expect sales growth to slow in the near term due to a weak market for home furnishings, we think the unique store format presents the company with plenty of room to expand its store base and continue growing the top line at a decent pace.

The main risk is that Tuesday Morning may have problems sourcing enough quality items to sell at compelling prices as it grows. Many manufacturers are improving their inventory management, leaving them with fewer goods to sell to closeout retailers at rock-bottom prices. Growth in comparable-store sales, or comps (sales at stores open at least a year), has declined significantly from the double-digit rates of a few years ago, which could indicate that the company is having a tougher time finding first-quality goods to sell. If this trend continues, it could pressure Tuesday Morning's margins, as well as force it to increasingly offer lesser-known brands, which could hurt customer loyalty. In addition, the company's plans to accelerate store openings in the Northeast could pressure margins, thanks to higher store operating costs such as rent and labor in that region.


Valuation

Our $28 per share fair value estimate is based on a discounted cash-flow analysis. We expect sales growth to average about 9% per year for the next five years, driven by about 70 annual new store openings. We expect comps to be down slightly in 2005 and 2006, based on the weak current market for home furnishings, before recovering to low-single-digit levels. We expect operating margins to be challenging over the next couple of years as comps declines leave the company with less sales revenue to spread over its fixed costs. In the longer term, we anticipate that the operating margin will improve modestly, primarily based on continued gross margin improvements resulting from the company's recently implemented distribution and inventory-allocation systems.

Risk

The biggest risk facing Tuesday Morning is that as it continues to grow, it will become more difficult to find quality brand-name merchandise to sell at compelling values--while still generating attractive profit margins. Many manufacturers have improved their inventory management, leaving them with fewer goods to unload at rock-bottom prices.
"
 
Focus on CHB and TUES today. Both stocks are TA rebounce play. TUES has a perfect reb

Focus on CHB and TUES today. Both stocks are TA rebounce play. TUES has a perfect rebounce chart from its yearly bottom $21. TUES is so cheap now that we cannot miss it. CHB open at $15.23 this morning showing a good start.
 
Start to load shares. Our economy is still good, unemployment is low, corporations on

Start to load shares. Our economy is still good, unemployment is low, corporations on average earning is mild. oil price will calm down. Iran's problem will be solved soon and oil speculators will soon stop pushing the price up. Today's 200 points cut is not the stock market overvalued, but just the traders want it to.

Several good stocks you can think about to load at today's bloody battle field:
MPS, NDN, CHB, EMC, SCS, TUES, VECO, BMC, IM, LUV, BRO,CC

Among these stocks, I prefer EMC, TUES, LUV and CHB
 
TUES has strong balance sheet with P/E between 14 and forward P/E 13. PEG ratio less

TUES has strong balance sheet with P/E between 14 and forward P/E 13. PEG ratio less than one. Small debt with high institutional holding. The more important number is the thin outstanding share with cheap price. Average 10 days volume is double than last average 3 months volume showing a strong buy side action. With this higher volume, the stock price was on the up trend. This is why I pick TUES. TUES is a solid company with its bottom support @ $20 level. Analysts raised TUES target to a mean $27 target.
 
TUES Bull/Bear comments

TUES Bull/Bear comments

Bulls say

Tuesday Morning faces little direct competition, as the company is the sole national closeout retailer of upscale home furnishings and related items.


Tuesday Morning's no-frills store environment keeps store opening and operating costs low, contributing to the company's impressive first-year returns on new stores.


The company's loyal, established customer base keeps advertising costs low (it mainly advertises through mailings to existing customers) and provides a barrier to entry for new competitors.


Tuesday Morning's recent investments in distribution and merchandise allocation systems should help drive continued profit margin improvements.


Tuesday Morning should benefit from the continuation of the cocooning effect, as consumers spend more money on their homes.


Bears Say

Tuesday Morning's increased focus on opening stores in the Northeast could lead to higher store operating costs, due to higher rents and labor costs.


Rising interest rates may hamper sales growth, as fewer consumers purchase new homes or remodel their existing homes with the proceeds of mortgage refinancings.

My target of TUES is above $27.
 
EMC tops view as profit jumps 27%

EMC tops view as profit jumps 27%
By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- EMC Corp. on Wednesday posted a fourth-quarter profit before items that grew 27% over a year ago as the storage-technology giant saw healthy increases in sales of both its storage system products and software applications.




Revenue rose 15% to $2.71 billion in the latest three months from $2.36 billion in the year-ago period.

Analysts surveyed by Thomson First Call were looking for EMC to earn 12 cents a share in the December period on $2.69 billion in revenue.

EMC, based in Hopkinton, Mass., said its storage-systems revenue grew to $1.3 billion, up 19% from a year ago, in the quarter. Software continued to become a bigger part of the company's overall revenue, rising 16% to $1 billion. Professional services sales posted a 4% increase from a year ago, rising to $403 million.

Looking ahead, the company forecast earnings before items of 14 cents a share for the first quarter on revenue of between $2.57 billion and $2.59 billion.

For fiscal 2006, EMC sees earnings before items of 63 to 66 cents a share on revenue of between $11.1 billion and $11.3 billion.

On a GAAP (generally accepted accounting principles basis), the company forecast earnings of 11 cents a share for the first quarter, and 54 to 57 cents a share for the full year.

Wall Street's current consensus estimates are for earnings of 14 cents a share for the March quarter, and 65 cents a share for 2006
 
EMC positive guidance: EMC CFO: 'Confident' About Opportunities in 2006

EMC positive guidance: EMC CFO: 'Confident' About Opportunities in 2006

EMC Corp. (EMC) Chief Financial Officer William Teuber said Tuesday the company is "confident" about its prospects this year.

EMC is "very excited about the opportunities it sees in 2006," Teuber said during a conference call to discuss fourth-quarter results with Wall Street.

According to the financial chief, EMC is confident about 2006 because it expects its momentum from 2005 to carry on in 2006. He said products rolled out in the second half of 2005 will continue to ramp up this year, adding to the company's optimism. Teuber added that EMC will introduce new products in 2006, with a "major" announcement coming later this week.

For its fourth quarter, Hopkinton, Mass.-based EMC reported net income of $ 148.3 million, or 6 cents a share, compared with net income of $320.5 million, or 13 cents a share, in the year-ago fourth quarter. Revenue came in at $2.71 billion, up from $2.36 billion a year earlier.

Excluding charges, EMC posted profit of $409 million, or 17 cents a share. Analysts, according to Thomson First Call, had expected EMC to report earnings of 17 cents a share and revenue of $2.6 billion.

For the first quarter, EMC is targeting revenue of between $2.57 billion to $ 2.59 billion and earnings of 14 cents a share, excluding the adoption of Financial Accounting Standard No. 123R.

For the full year, EMC is targeting revenue of $11.1 billion to $11.3 billion and earnings of 63 cents to 66 cents a share. The First Call average estimates stand at first-quarter earnings of 14 cents a share and revenue of $2.56 billion. For the full year, analysts' estimates stand at revenue of $10.95 billion and earnings of 65 cents a share.

Joseph Tucci, EMC's chief executive, who was also on the call, said he is " bullish on the economic front" and expects a resurgence of the economy in Western Europe during 2006.
 
Morningstar raised EMC's fair value to $19 from $16

Morningstar raised EMC's fair value to $19 from $16
Analyst Note 01-23-2006

We are raising our fair value estimate for EMC to $19 per share from $16 to account for increased revenue growth and operating margin assumptions. We have modeled average revenue growth at approximately 12% over the next five years driven primarily by growth of the small and medium enterprise segment. We believe software and services growth should allow the company to continue expanding operating margins to more than 16% from the low double digits in 2004. We expect the company to earn very attractive returns on capital at more than 20% over the next five years. Options shave approximately $1.50 per share from our fair value estimate.

We believe EMC EMC represents the class of the storage industry. We are raising our fair value estimate for this storage giant to $19 per share from $16.

We expect EMC (along with NetApp NTAP) to pull away from the competition in 2006 as the storage industry both grows and consolidates. Currently, six storage vendors have more than $1 billion in revenue each, but none has the breadth of products or sales capabilities of EMC. We are forecasting average revenue growth for EMC at more than 12% on the back of a highly effective sales team. In contrast, we expect the overall storage industry to grow at about 8%. EMC spent considerable resources in 2005 to better define pricing and support for its sales channel, issues that have plagued the company in the past. We believe these efforts have been largely successful and the company will see results in 2006. We also expect operating margins to increase more quickly than our earlier forecast, exceeding 16% for 2006 as the company realizes leverage from investments made in 2005.

In our view, EMC is a leading technology company in a growth industry. We would eagerly recommend an investment at a modest discount to our fair value estimate.

EMC has risen above the competition in the market for storage hardware and software.

EMC's strategy has successfully kept the firm at the forefront of an evolving storage industry. Vendors selling both high- and mid-range systems have to incorporate a broad array of storage technologies solving different business problems. Customers' storage requirements have moved beyond mass data repositories to include compliance, continuous data protection, and disaster recovery. These diverse requirements necessitate multiple storage technologies known as tiered storage. Competitors selling single products have to partner with the large storage providers like EMC to be included in the tiered storage solution.

EMC's narrow moat centers on its large installed customer base and its focus on product integration and support. While storage hardware standards have become more open, we believe customers look to EMC to provide better software management and integration services for their evolving storage needs. EMC's customers have significant integration requirements, and it is easier and cheaper for them to buy more products and services from EMC than from rivals such as IBM IBM and Hitachi HIT. We are excited about EMC's prospects for the near to intermediate term, but we do not believe the company has a wide moat. We think that there is reasonable risk that disruptive technologies in storage and software architectures may weaken EMC's leadership position over the long term.

We believe that EMC's next phase of growth will be driven by an effective sales channel strategy, furthering penetration into the small and medium enterprise segment. We are big believers in the future growth of this largely untapped segment driven by a need for affordable storage hardware optimized by sophisticated storage management software. Most notably, EMC entered a partnership with Dell DELL to sell a mid-range line of storage servers. The partnership has allowed EMC to successfully penetrate a new customer base. Through partners, EMC can grow revenues with relatively little investment in its salesforce. We expect EMC's channels to help the company expand operating margins and drive overall growth.

We are impressed by EMC's position in the storage industry and believe in the investments the company has made in its sales channels and software products. We feel the company is setting the pace for the storage industry and would gladly invest at a modest discount to our fair value estimate.
 
Time to load back IM with good news this morning. Solid company with strong balance s

Time to load back IM with good news this morning. Solid company with strong balance sheet.

Analyst comment:

"Slim profit margins and cyclical demand make the IT distribution industry challenging. Nevertheless, an expanding market presence in Asia and a focus on reducing costs should contribute to Ingram's long-term success.

IT product distribution has evolved into a two-tier system. First-tier distributors, such as Ingram Micro and Tech Data TECD, consolidate thousands of products from hundreds of vendors for second-tier resellers, such as CDW CDWC and Insight Enterprises NSIT, which integrate those products into complete solutions for end users. Distributors also provide service, support, and financing to resellers. Two-tier distribution is valuable because a direct sale from vendors to resellers is costly for both, given the number of parties involved.

Cyclical IT demand and increasing competition have made the distribution industry extremely challenging. Average gross margins have declined from 8% in the mid-1990s to about 5.5% today, while operating margins have dropped from 2.25% to about 1% during the same period. The fallout could have been worse, but Ingram's management implemented tight cost controls and strict working-capital management standards to restore profitability. Other decisions by management, such as developing tiered pricing, offering supply-chain management services, and a focus on vertical markets have aided profitability as well.

To gain market share, low-margin vendors have been expanding distribution channels globally. Ingram Micro's $550 million acquisition of technology distributor Tech Pacific is an example of this strategy. Because of the acquisition, Ingram Micro is now the largest technology distributor in the Asia-Pacific region. Tech Pacific adds about $2.5 billion to revenues, and increases the Asia-Pacific region's share of total revenues to almost 20% from 10%. Though regional operating margins are just above 1%, competitive advantages from Ingram Micro's dominant position could help lower costs and deter potential market entrants, providing a potential boost to profitability."

Management has been working hard to improve financial health as well. Over the past five years, Ingram Micro has paid down more than $1 billion in debt, strengthened its inventory management system, and enhanced fixed-asset turnover. Given these business model improvements, we would buy shares at a reasonable discount to our fair value estimate.
 
If you like the steel stocks that I picked last year, such as SCHN, OS, you might nee

If you like the steel stocks that I picked last year, such as SCHN, OS, you might need to pay attention to TUES. Big company with a little trouble before, but back on track and getting healtier. TUES not only have strong balance with dividend payout, but also have the best timeliness now. Bottom formed at $20-21 with large volume and momentum. I like TUES because it has huge upside appreciation room with less risk.

TUES is too cheap to miss it. My target at least $27 in 3 months.
 
Seagate's strong stock momentum and revenue shed light on the data storage business.

Seagate's strong stock momentum and revenue shed light on the data storage business. EMC is the number one in high end data storage industry, I believe EMC's stock trend will like RHAT or STX since by just thinking the demand side of the data storage I can figure out how good the business is. $13 is too cheap for EMC now, I found RHAT when it was $13, and now is almost $30.I picked RHAT based on its market share in Linux and the demand side on Linux system. I use the same logic pick EMC due to its expanding business in data storage. When a day EMC is $30, check back this thread.
 
IM rebounce from its 200MA like i mentioned this morning. IM should traded above $20.

IM rebounce from its 200MA like i mentioned this morning. IM should traded above $20.

TUES accumulate some momentum here, based on morningstar's evaluation, TUES has fair value $27. With TA and FA are both good, I am bullish on TUES.

Waiting for CHB back to $14. CHB has touched $15.23 last week with large volume. Institution accumulate shares when CHB is down to lower $13. CHB is a solid compnay with demnad of factory-built home demand is surging due to hurricane.
 
TUES has strong support on its 20MA.Yesterday closed at exactly 20MA line which I thi

TUES has strong support on its 20MA.Yesterday closed at exactly 20MA line which I think is the rebounce point. $22 is still cheap compared to its P/E 13. Also TUES has very low debt and strong cash position. With the short term rebounce momentum, now is still not late to load some shares.
 
Sell RES and FCEL due to oil price pull back. Although RES shouldn't correlate with o

Sell RES and FCEL due to oil price pull back. Although RES shouldn't correlate with oil price, almost $10 per share profit satisfy my return. Maybe get back in oil when the trend is more clear. Long term oil is still a big concern, be ready to get in any time.

EMC momo still, very strong buy side even with market in red. EMC should go all the way up like RHAT. Strong and optimistic guidance for 2006 should push it to close $15.

TUES showing strong resistance today with low volume. 20MA should give it some push. We saw $22 today, my target is $27 or higher. Yesterday TUES had 1M volume that is three times higher than average. TUES easy money here for short term.
 
EMC Product Announcement shows several new technology and new products. EMC will be t

EMC Product Announcement shows several new technology and new products. EMC will be the "Intel" in data storage.

01-26-06 | 08:04 AM CST EMC New Rainfinity Global File Virtualization Capabilities Simplify NAS Management

01-26-06 | 08:03 AM CST EMC New EMC Centera Features Deliver Advanced Retention Management Capabilities

01-26-06 | 08:02 AM CST EMC New EMC IP Storage Software Delivers Unmatched Performance and Ease of Use

01-26-06 | 08:01 AM CST EMC EMC Delivers World's Fastest, Most Flexible and Scalable Storage Array

01-26-06 | 08:00 AM CST EMC EMC Unveils New Storage and Virtualization Technologies that Extend Benefits of ILM
 
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