VMW earnings after close on Monday

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Any ideas on this?

With the huge glut of info coming next week I am not inclined to take the bait, but I would surmise they beat estimates.

Thoughts
 
This stock just hasn't been going down with this latest market sellofff. I wouldn't be surprised if they blowout on the upside.
 
What do y'all think about VMW versus EMC? Each EMC share controls 0.157 shares of VMW. That means, at today's closing prices, $12.65 of every EMC share is their ownership stake in VMWare, whereas only $4.07 is the rest of EMC.

Do you think EMC's core business is worth only $4.07 a share? Is buying EMC a better way to buy VMW?

Martin
 
EMC is cheap because of the embedded value. However, if you've seen this type of situation before (stodgy company owning a big chunk of a hot subsidiary), you'll know that the pricing inefficiency can last for a *long* time, sometimes several years, until there is some kind of corporate activity to sort out the value discrepancy.

In the meantime, the hot stock will provide the better % returns if it keeps going up. My solution is to own both.
 
I got my eye on this today. I had a hard on for this at the IPO. I majorly pussied out seeing this baby zoom to $120, I know I would have dumped sooner.

I'm tempted to make a play but probably won't. Got a friend who has harping on me to buy this from day1.I'll just railbird this one. I missed the ride up, no point in chasing it now....
 
Can somebody explain to an old skeptic like myself why VMW would have a market cap of $30 bln? Do earnings growth projections match the valuation?
 
Quote from makloda:

Can somebody explain to an old skeptic like myself why VMW would have a market cap of $30 bln? Do earnings growth projections match the valuation?
More...

Depends on who you ask, I figure they are trading about 60-70 times forward earnings
 
you have MSFT looming as a competitor and that is holding the stock down along with the overall market. they beat and raisemthere will be a big short squeeze after hours. don't know if a gap holds in a week market though. they seem to be selling all gap ups.
 
Quote from Cutten:

EMC is cheap because of the embedded value. However, if you've seen this type of situation before (stodgy company owning a big chunk of a hot subsidiary), you'll know that the pricing inefficiency can last for a *long* time, sometimes several years, until there is some kind of corporate activity to sort out the value discrepancy.
More...

I don't mind waiting a few years. The last example I can think of was COMS/PALM and that arbitrage took at most two years to be wildly profitable.

For a while COMS share of PALM was worth more than the entire market cap of COMS.

Martin
 
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