EMC Corporation (NYSE:EMC) has been moving up and down in stages but the stock has been mostly in the bracket of $26 – $28 over the last month. The company has been facing some competition in the Storage sector, however it’s doing good enough to stay stable.
Marian Kessler of Becker Capital Management, in her recent interview on CNBC, was discussing about the stocks their company is interested, mostly tech stocks. Here is what she had to say about her company’s policy on investing:
“We are not top down sector rotators. We are really stock selectors doing fundamental research but one of the areas we found opportunity lately has been in the tech space.”
Kessler feels that tech group has been very interesting from a cash flow perspective, Return on Investment capital and these stocks are inexpensive.
Kessler’s recent choice from the Tech sector is EMC Corporation (NYSE:EMC) and when she was asked about the reason for the tech company being amongst her favorites, she said that EMC Corporation (NYSE:EMC)’s stock has underperformed in the market in its sector over the last two years. Kessler feels that the balance sheet of EMC Corporation (NYSE:EMC) is cash rich with about $14 billion and its cash flow yield is sitting pretty at 11%. This cash rich balance sheet of $14 billion with a debt of $5 billion makes EMC Corporation (NYSE:EMC) Kessler’s choice recently.
Three of the top 5 holdings Kessler has are tech companies. Companies like Microsoft Corporation (NASDAQ:MSFT) and AT&T Inc. (NYSE:T) feature in the list.
Aristeia Capital has invested well in EMC Corporation (NYSE:EMC) with about 10 million shares as of 31st March 2014. While the key investors in Microsoft Corporation (NASDAQ:MSFT) are Valueact Capital with approximately 71.2 million shares and Eagle Capital Management with around 33.2 million shares.