Seeking Alpha: The Dell And Market Pessimism For EMC Is Too Much

Buyouts are generally supposed to produce upside for the shareholders of the company being acquired, but that hasn't been the case for EMC (NYSE:EMC) since the company announced its merger agreement with Dell back in October of 2015. While it has indeed been a lousy market for a few months now, EMC's 12% drop since the time of the deal is worse than the performance of the Nasdaq, as investors have grown increasingly worried about the weak performance of EMC's storage business, the poor performance of VMware (NYSE:VMW), and concerns that the deal may not go through at all.

I believe that the deal gets done, but even if it does not, I believe EMC would walk away with at least $4 billion in cash in its pocket and an underestimated PaaS business in Pivotal. I wouldn't expect EMC's reported storage results to improve much until mid-2016, but with a stand-alone value above today's price and very low implied value to VMware, I believe there's still upside in these shares that is worth the risk that the deal unravels.

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The Dell And Market Pessimism For EMC Is Too Much

Investopedia: NetApp Underwhelms, But Still Looks Undervalued

There is a risk that investors and analysts are going to start viewing NetApp (Nasdaq:NTAP) less as an undervalued tech stock in an attractive market and more of a “cheap for a reason” underperformer that has gone about as far as it can against its major rival EMC (NYSE:EMC). I don't really share that view per se, but it's harder to argue for the bull case on NetApp when the company continues to leave the Street wanting more.

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http://www.investopedia.com/stock-analysis/081513/netapp-underwhelms-still-looks-undervalued-ntap-emc-ibm-hpq.aspx

Investopedia: NetApp Is Probably Cheap, But The Headwinds Aren't Going Away

Tech is in the dumps. That's not really new or controversial, as even Cisco's (Nasdaq:CSCO) report was not all that strong in absolute terms. To that end, it's not entirely surprising that NetApp (Nasdaq:NTAP) reported results that were a bit weak and guidance that wasn't terribly impressive either. I don't believe that NetApp is closing the gap with EMC (NYSE:EMC), nor will in the foreseeable future, but I believe there's plenty of money to be made as the #2 storage company, and I believe these shares continue to look meaningfully undervalued.

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http://www.investopedia.com/stock-analysis/052213/netapp-probably-cheap-headwinds-arent-going-away-ntap-emc-dell-ibm-orcl-csco.aspx