"Some information technology areas have more dynamic growth prospects than others; a prime example is the emerging field of cloud computing," says growth stock specialist Stephen Leeb.

The editor of The Complete Investor explains, "One company in the forefront of this cutting-edge approach to information storage and management is EMC (EMC), a leader in digital data storage.

"Cloud computing refers to the storing of digital information -- documents, spreadsheets, software, etc. -- not on a company's or individual's own hard drive but in remote data centers, from which it can be accessed via the Internet.

"This is still a psychologically damaged market; take for example, what happened with VMware (NYSE: VMW) after its latest earnings announcement," notes Toby Smith in ChangeWave Investing.

"VMware recently reported that its fourth-quarter net income more than doubled on an 80% increase in revenue. Despite these excellent results, after-hours selling has plunged the shares lower by 25% to around $61.

"The culprit appears to be analysts' forecasts for an 82% increase in revenues. The buzz on the Street is that this miss signals stiffer competition in the virtualization space from Microsoft (NASDAQ: MSFT) and Oracle (NASDAQ: ORCL).

"However, during the conference call VMW management said customers have tried some competitors' products and told them that they see no reason to switch.

"This sell-off is similar to what recently happened to Apple (NASDAQ: AAPL) -- blowout performance followed by a hatchet job on the shares. As with Apple, we see this price drop in VMW as a great opportunity to establish a low cost-basis in the stock.