EMC Could Absorb VMware by Year End:
EMC shares improved to overcome Market Perform.
We believe the risk / reward EMC (ticker: EMC) is more favorable in light of: 1) a reduction in risk estimates with reduced orientation; 2) the potential for a series of strategic actions of the company; and 3) improving the potential key results in 2016 thanks to strategic growth initiatives, revenue synergies of the federation and reducing costs.
While recognizing that the fundamental story is a little further, we believe that management could take strategic actions before the end of the year, which we believe could be a catalyst (the absolute best, in our opinion, would be buy-in VMware (VMW)). And while we might have been burned by shareholder activism, we believe all work essentially the strategic actions (for example, now occur independently of shareholder activism). Our 2015-2016 earnings per share estimate of $ 1.88 and going to $ 2.10, respectively, $ 1.91 and $ 2.13, respectively, and our portfolio valuation increased to $ 29- $ 31 from $ 26- $ 28.
2016 EPS should be around 12 cents, assuming strategic investments ramp as expected, having to $ 2.00 EPS. We expect an additional 10 cents a share buyback, the cost of the initiatives, and the heart of business to get our $ 2.10 estimate, implying a 11.6% growth year after year a reacceleration benefit. Our new valuation is based on about 12 times our estimate of 2016 free cash flow per share of $ 2.52.
EMC seems to have spent more time thinking about their strategy. Management was emphatic that swarm VMware would be a bad decision, which is considered a positive (and also categorically opposed to a spin-off).
[EMC has about a 80% stake in VMware.]
The final text may suggest that EMC has spent time thinking about their strategic options and other evidence, in our opinion, it is an apparent openness to the sale of secondary activities (which could help generate extra money) and the creation of the new tion the market organization (process a key issue of our, providers EMC and VMware competed against each other in the same accounts).
Although it may take some time to execute the ideas of logistics in action, we believe it is quite possible that the ads before the end of the year. While this may be somewhat smaller as other provisions, we believe a buy-in for VMware is always an option, in our opinion, the best strategic option synergies given material costs and more tightly integrated solutions to market potential .
We believe the risk / reward EMC (ticker: EMC) is more favorable in light of: 1) a reduction in risk estimates with reduced orientation; 2) the potential for a series of strategic actions of the company; and 3) improving the potential key results in 2016 thanks to strategic growth initiatives, revenue synergies of the federation and reducing costs.
While recognizing that the fundamental story is a little further, we believe that management could take strategic actions before the end of the year, which we believe could be a catalyst (the absolute best, in our opinion, would be buy-in VMware (VMW)). And while we might have been burned by shareholder activism, we believe all work essentially the strategic actions (for example, now occur independently of shareholder activism). Our 2015-2016 earnings per share estimate of $ 1.88 and going to $ 2.10, respectively, $ 1.91 and $ 2.13, respectively, and our portfolio valuation increased to $ 29- $ 31 from $ 26- $ 28.
2016 EPS should be around 12 cents, assuming strategic investments ramp as expected, having to $ 2.00 EPS. We expect an additional 10 cents a share buyback, the cost of the initiatives, and the heart of business to get our $ 2.10 estimate, implying a 11.6% growth year after year a reacceleration benefit. Our new valuation is based on about 12 times our estimate of 2016 free cash flow per share of $ 2.52.
EMC seems to have spent more time thinking about their strategy. Management was emphatic that swarm VMware would be a bad decision, which is considered a positive (and also categorically opposed to a spin-off).
[EMC has about a 80% stake in VMware.]
The final text may suggest that EMC has spent time thinking about their strategic options and other evidence, in our opinion, it is an apparent openness to the sale of secondary activities (which could help generate extra money) and the creation of the new tion the market organization (process a key issue of our, providers EMC and VMware competed against each other in the same accounts).
Although it may take some time to execute the ideas of logistics in action, we believe it is quite possible that the ads before the end of the year. While this may be somewhat smaller as other provisions, we believe a buy-in for VMware is always an option, in our opinion, the best strategic option synergies given material costs and more tightly integrated solutions to market potential .
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