EMC Corp. Breaks Outs With a Golden Cross

by Sam Collins | March 20, 2014 1:45 am

EMC Corp. Breaks Outs With a Golden Cross

EMC Corp. (EMC[1]) — One of the world’s largest suppliers of enterprise storage systems, EMC also owns 80% of VMware (VMW[2]), an industry-leading provider of server virtualization software. VMW jumped from under $90 in the beginning of February to over $110, in part because it is “moving customers from the client-server era to the mobile-cloud era of computing,” according to ChangeWave Research’s Josh Levine. He estimates that the total capacity for movement from enterprise storage to the public cloud will be more than 400% from 2011 to 2016. 

I last reviewed EMC on Jan. 14[3], near $25, and before that on Dec. 20[4], when S&P reported that an anticipated rise in revenue driven by the increased adoption of cloud computing was the basis for its projected steady increase in earnings. It estimates operating EPS of $1.95 in 2014 and $2.12 in 2015. S&P has a “five-star strong buy” recommendation on the stock with a 12-month price target of $32. 

Technically, since Dec. 20, EMC has completed a break from a huge bullish saucer by closing above both its 50-day and 200-day moving averages, flashing a golden cross.

Buy EMC under $26 with a trading target of $32. Investors may want to buy shares for longer-term participation in the expansion of the mobile cloud market. EMC has a dividend yield of 1.5%.

03 20 14 emc 300x190 EMC Corp. Breaks Outs With a Golden Cross
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chart key 300x84 EMC Corp. Breaks Outs With a Golden Cross[5]

Endnotes:
  1. EMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMC
  2. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  3. on Jan. 14: http://investorplace.com/2014/01/trade-day-emc-corp-emc-3/
  4. on Dec. 20: http://investorplace.com/2013/12/trade-day-emc-corp-emc-2/
  5. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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