dpinvest

Behind the Scenes at VMware

Author cites stats for bullish case. But no stats for short sale case. Citing competition from MSFT & Citrix from as yet unreleased products is pure speculation - and as we all know, MSFT has stumbled mightily trying to compete with GOOG & others. Plus VMW has a 7-year head start & is being used by ALL of the top S&P 100 companies, which all in process of expending their use of VMW products. Author says 40x 2009 earnings is "too high, even for tech" - well, it's not too high when your earnings growth rate is higher than your PE, thus a PEG of below 1. In fact, the best techs often trade at PEGs above 1 because people love good companies who are more likely to sustain earnings growth. Add to this most important fact that companies today , as always are looking to save time & bmoney, every VMW purchase reduces corporate costs & use of their valuable time.