Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

EMC Corporation (EMC): Smart Money is Confident Ahead of Dell Merger

It is common knowledge that there are numerous strategies for picking good stocks, but the art of stock-picking is quite cumbersome and complex for most investors. There are thousands of stocks to choose from, so how can individual investors select good stocks or at least avoid risky and bad stocks? Choosing stocks based on a particular criteria using stock screeners might represent a suitable option, but this method can eliminate some high-potential stocks that could possibly generate big trading profits. Before proceeding to the stock selection process, individual investors should clearly formulate the purpose of their portfolios. Depending on whether investors are looking to generate current income or capital appreciation, the pool of stock candidates can differ. Moving on to the stock selection process, investors can also select potential equity investments by examining the basket of most-favored stocks among top hedge fund managers. This basket includes both income and growth stocks, and both small-cap and large-cap stocks, so investors will definitely find something that suits their investment strategies. With this in mind, let’s take a look at the recent hedge fund activity surrounding EMC Corporation (NYSE:EMC).

Is EMC Corporation (NYSE:EMC) undervalued? Hedge funds appear to believe so in increasing numbers. The number of bullish hedge fund bets rose by 12 in recent months. EMC was in 77 hedge funds’ portfolios at the end of December. There were 65 hedge funds in our database with EMC holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Duke Energy Corp (NYSE:DUK), Netflix, Inc. (NASDAQ:NFLX), and The Bank of Nova Scotia (USA) (NYSE:BNS) to gather more data points.

Follow Emc Corp (NYSE:EMC)
Trade (NYSE:EMC) Now!

Insider Monkey has spotted a number of investment strategies that have historically outpaced the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests (read more details here).

In October 2015, Dell Inc. announced that it had agreed to acquire EMC Corporation (NYSE:EMC) for roughly $67 billion, a “game-changer” deal that will create a powerhouse in the technology industry. The soon-to-be combined company will represent a leader in several high-growth sectors of the massive information technology market. Meanwhile, the merger has already received antitrust clearance from the U.S. Federal Trade Commission, European regulators, and regulatory agencies in several other countries, so the completion process of the deal is well underway. At the same time, Dell and EMC recently revealed the possible Executive leadership team of the future combined company, through an internal memo and a public filing with the SEC. Nonetheless, the transaction is still subject to approval by EMC’s shareholders, regulatory clearance in other jurisdictions and other customary closing conditions. There have also been reports that Dell is having trouble raising the capital to complete the deal, which poses another major hurdle. The shares of EMC have advanced by 2% since the beginning of the year.

Now, let’s analyze the key action encompassing EMC Corporation (NYSE:EMC) as well as an activist’s take on the forthcoming merger.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.