EMC Corporation (EMC)

Hey everyone thanks for coming by and reading my little blog.
After scanning the list of top of NYSE % gainers, I spotted EMC Corporation on there with a $0.10 gain on Friday.
This stock has been doing great this year up over 38% year to date!

I do not own any shares of EMC at this time.

I am rating EMC a Buy on there fundamental strength and the strong uptrend they have been in for the last few years. I would like to share with you my analysis of this company.

What does this company do?
The official description is:
EMC Corporation (EMC) and its subsidiaries develop, deliver and support information infrastructure technologies and solutions that are designed to help individuals and organizations handle their digital information needs. It operates in four segments: information storage, content management and archiving, RSA information security and VMware virtual infrastructure. They are in the Computer/Storage Device Sector.

How has this company been doing?

EMC released there 2nd quarter earnings report on June 30th. Revenue increased 19% to $6.10 billion. Net income was up 17% to $647 million..

Looking more long term we see that revenue has steadily increased from 6.24 billion in 2003 to 11.2 billion in 2006. Earnings have increased steadily from $0.25 per share in 2003 to $0.63 in 2006.

The company does not pay a dividend at this time. Number of shares outstanding has gone down a little at around 2.4 billion shares in 2003 to 2.1 billion shares in 2006. Only 1.97% of float is out short.

Current ratio is strong at 2.1. I look for anything over 1 to 1.5.

As you can see this company is starting to look pretty strong.

Valuation
Now for some valuation numbers current PE ratio is a good 29.5. PEG ratio is a good 1.27. Price/Sales ratio is 3.2, 91% greater than other company's in the same industry. Return on Equity comes in very strong at 11.9% better than 76% of company's in the same industry. Valuation wise people know this company is strong and are willing to pay a premium for that strength and growth.

The Chart
Looking at the chart we can see that this company has been in a very strong uptrend since September of last year. Right now were are right up against the 50 day ma but has not broken through. As long as we don't see a break through the 50 day ma it looks like the uptrend will continue.






All around this stock looks great, earnings are strong every quarter and are still getting stronger. If I were buying stocks today this is one I would be purchasing.

EMC CORPORATION IS RATED A BUY