EMC's Perception Problem

Will EMC deliver a solid June quarter? Goldman's Conigliaro thinks it well may, even though the quarter is heavily skewed toward the final weeks. "EMC stands a good chance of being able to hit its targets for the June quarter," she says. As to Tucci's remarks about the spending environment, Conigliaro says, "EMC is getting punished for generic comments that should already be well-understood, as well as applicable to a much broader part of the enterprise space." Goldman Sachs has an investment banking relationship with EMC.

In the absence of significant news, it's likely that the stock will drift between now and the company's second-quarter earnings report on July 20. If Tucci & Co. can deliver an upside in June, or better-than-expected third-quarter guidance, look for some recovery. If not, it will take longer for this stock to come back.

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