Lioness Associates, Inc.

Economic & Corporate Risk/Yield Reports

August 5, 2012 EMC - Update for 2012

The article written April 4, 2012 (below) stated that EMC had already appreciated significantly against the DOW this year and that earnings released in April might not entice new investors to generate another significant uptick in stock price for April of 2012.  This appears to have happened with EMC in a down trend from the beginning of April until June of 2012 (see graph at right with EMC comparison to DOW - from Yahoo financial).

Both the EMC 2012 Delta Core/Transient and the EMC 2012 Risk/Yield graphs do have a slight momentum into yield starting around the August 2012 timeframe.  As noted on the USA and Global graphs (see USA and Global graphs elsewhere on web site), periods of the EMC move will coincide with USA and Global momentum which bodes well for an upward shift to occur. Note that EMC momentum into yield at the August timeframe is not at a 400+ point value indicating that the move might be more of a drifting and maybe not translating into a strong push.

EMC also has an astrological configuration occurring in September that is likely to attract more investors to this company.  Some of this interest might be due to the valuation of VMWare which EMC has significant ownership of (80%). Investor interest will be fleeting, at least at first - think of it as the first wave.


April 3, 2012  -- EMC Risk/Yield for 2012

EMC has performed quite well year-to-date.  In that period the stock price has appreciated by approximately 35% compared to an appreciation of the DOW by approximately 5%.  The Delta Core/Transient for EMC during the beginning of the year plainly illustrates the momentum into the "Yield" area of the graph.  Also, note that while the Risk/Yield graph for EMC does display some "risk" factors, they are minimal compared with the "yield".

The next earnings are due around the April 19th date and while there is another slight upsurge in momentum in April, this does not continue too far past the earnings date maybe signifying that while earnings may have been what was expected or slightly better, it may not be enough to interest new investors.

The next slight upward move in momentum occurs in June which is likely due to investors moving into the stock before earnings which are due around the 20th of July.  In this case, earnings may not be sufficient to keep investors and to draw more investors in.  It should be noted that this period also corresponds to a "flat time" for the economy overall.

The 2012 fall period looks interesting and we'll cover later in this year - stay tuned.



          EMC 2012 Delta Core/Transient graph

      EMC 2012 Risk/Yield graph

Disclosure as of 4/3/2012 - EMC is not part of our portfolio at this time.