Why is emc stock dropping

A lot of them are not based on a lot of fact. Investors also are confused about its structure , which includes a complicated tracking stock meant to help EMC shareholders account for the company's 80 percent stake in VMware, analysts said.

EMC shares, however, are now trading near the cash price offered by Dell. That means investors are essentially placing "little to no value" on the VMware tracking stock, Pacific Crest Securities analyst Brent Bracelin noted in a report this week. And what does that mean? Does that mean both stocks go up? His rivals have aged out or moved on, whether tech billionaires Bill Gates or Larry Ellison or Steve Ballmer, who have shifted course to philanthropy or trophy assets such as Hawaiian islands and NBA teams.

Soon Dell will sit at the helm of two separate public companies: Dell Technologies, his personal computer and IT infrastructure giant, and its spinoff, VMware, a mainstay in cloud-computing infrastructure. Both will hold manageable debt levels and a valuable currency for growth and acquisitions.

F ew entrepreneurs starred as brightly as Michael Dell during the rise of the personal computer. From a University of Texas dorm room in , he created the company that delivered the first PC to millions of Americans, employing the mantra faster, better, cheaper.

Dell forged his path using efficiency and deft financial maneuvers, which enabled him to bundle and distribute made-to-order computers at ultralow costs, skills he honed at a young age. As a teenager, he sold newspaper subscriptions and industriously combed county archives to find the addresses of recently married couples he believed had an inclination to subscribe.

At 16, he had saved enough to buy an Apple II, which he took apart to study its mechanics. Dell capitalized on the personal computer after entering the University of Texas at Austin in as a premed student. He hawked disk drives and memory chips to burgeoning PC enthusiasts. Dell had started his business five years earlier in his University of Texas dorm room.

He would take orders by mail and phone, then assemble the PCs and ship them within one to three weeks, bootstrapping his business with customer orders. He was anointed a technology wunderkind, joining the likes of Steve Jobs and Bill Gates in the original Under 30 club as they collectively took the computer industry mainstream. Then the empire started to crack, in part due to a race to the bottom in PC margins that Dell himself had kicked off. After retiring in , he returned ahead of the financial crisis to a company in turmoil, stung by an accounting scandal and behind in big trends like laptops.

The advent of the iPhone, iPad and low-margin Chromebooks further ate into its prospects, and the market began to treat its server and storage business as obsolete. By , PC sales were plunging and cloud computing was on the rise.

His company was increasingly grouped with corporate dinosaurs like Nokia. He needed to change the equation. Dell began a plot to reassemble his company with new features—like an early Dell PC—and make it valuable once more. One of its earliest investments was in a Silver Lake fund. Durban tracked down Dell at a conference that year in Aspen, Colorado, and asked for a meeting, using their homes in Hawaii as common ground.

Dell agreed to a walking meeting—one of his preferred ways of conferring with people—in Kona, Hawaii. The pitch worked. After a call to his friend George Roberts at KKR, Dell decided it was practicable and alerted his board of his intent to orchestrate the first mega-sized leveraged buyout in technology, an industry known for sitting on piles of unused cash and spending money recklessly—the exact opposite of what any LBO requires.

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