EMC shares could rise 20 pct in a year-Barron's

NEW YORK, Aug 19 (Reuters) - Shares of EMC Corp. (EMC.N), the No. 1 maker of corporate data storage gear, could rise 20 percent or more over the next 12 months, according to a report in the Aug. 20 edition of Barron's.

EMC, is the parent of software maker VMware Inc. (VMW.N), which listed on Tuesday and saw its shares soar 76 percent from an offer price of $29.

Shares of EMC, which still owns 86 percent of VMware, fell 3.7 percent on Tuesday and continued to trade down on Wednesday, as VMware stock rose another 13 percent, according to the article in the weekly financial publication.

Investors buying EMC will be getting its VMware holdings for far less than investors are paying for the IPO shares, Barron's said.

The article contends that EMC's share price does not reflect the current value of its stake in VMware. In other words, EMC investors are getting the VMware shares at a discount of about 40 percent, according to the report. (Reporting by Euan Rocha)