Right or wrong, EMC (NYSE:EMC)
is committed to its path of evolving into a leading provider of
"IT-as-a-service". Likewise, the company remains committed to an
operating structure that is going to continue to frustrate some
investors, as it believes (correctly, in my view) that VMware (NYSE:VMW), Pivotal, and other components are vital to its future strategy.
The
problem is that EMC is not delivering all that much right now. Reported
margins are unimpressive and the company is on a downward slide in
several productivity and inefficiency measurements. I believe that this
is a product of the company investing substantial sums today to generate
revenue and profits down the line, but I won't deny that there's a
strong element of "You gotta just trust me on this..." that does not
make for an airtight investment thesis. I continue to believe that EMC
is undervalued on relatively modest expectations, but it increasingly
looks to me that EMC is at least a year away from being able to deliver
the sort of results that will quiet critics and encourage its long-term
shareholders.
Follow this link to continue:
EMC Corp Sticking To Its Guns
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