For the Pure Growth portfolio, Covestor model manager BSG&L focuses on companies with 15% ROE, good liquidity and a PEG ratio of less than 1.25. Current top holdings include Caterpillar (CAT), Linn Energy (LINE) and Peabody Energy (BTU).
On March 17, BSG&L added a position in EMC Corporation (EMC), which develops, delivers and supports the IT industry’s range of information infrastructure and virtual infrastructure technologies and solutions.
EMC has had some high profile blunders, including the hacking of its anti-hacking division:
The world’s biggest maker of data storage computers on Thursday said that its security division has been hacked, and that the intruders compromised a widely used technology for preventing computer break-ins.
The breach is an embarrassment for EMC Corp., also a premier security vendor, and potentially threatens highly sensitive computer systems.
The incident is a rare public acknowledgement by a security company that its internal anti-hacking technologies have been hacked. It is especially troubling because the technology sold by EMC’s security division, RSA, plays an important role in making sure unauthorized people aren’t allowed to log into heavily guarded networks.
Despite these embarrassments, Trefis noted on SeekingAlpha that EMC has potential elsewhere, specifically in the cloud computing space:
EMC’s new unified storage line, called VNX, is expected to be the cheapest in its class and will allow EMC to make inroads into the small and medium enterprise (SME) market.
…
With EMC pushing into the SME market aggressively, NetApp (NTAP) may witness flat or even a decline in market share depending on the growth of this market and competition.
EMC closed up 0.27% as of 3/18.
Sources:
“EMC’s anti-hacking division hacked” Associated Press, 3/17/11.
“EMC’s New Storage Line Poses a Threat to NetApp” Trefis. Seeking Alpha, 3/8/11. https://seekingalpha.com/article/257103-emc-s-new-storage-line-poses-a-threat-to-netapp
