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.

Potash/Fertilizer Industry: The Week That Was

Thanks to Matthew Smith & Mark Anthony for your articles. Given the MOS, AGU & POT outlook for substantial increases in EPS 08 & 09, yet crosswinds from shortsellers, possible dollar rally, possible commodity correction - what are we to do now? My solution: buy on dips, trade for short term profits, don't expose too much capital for too long - because the sharks will eat you if traders force the momentum down. Remember one of Herb Greenberg's 5 lessons learned in his article in this weekend's Wall St Journal - stocks & companies often move in opposite directions. We can't ignore the tape, despite great fundamentals. Your thoughts fellas?

E*Trade Financial: Great Company, Great Bargain

How much more of the $12B in mortgages on the books will need to be written off? What is this company's plan for returning to profitability? Perhaps a deal hasn't been done yet because no one wants to buy a bunch of mortgage liabilities hanging on an unprofitable brokerage business, that is overleveraged with high interest debt/pref stock.

E*Trade Financial: Great Company, Great Bargain

Mr. Deen's article on E-Trade fails to even mention the fundamental debt & earnings outlook of this company. Book value evaporates quickly when you lose money & incur high debt levels at high rates. Why should any of us own this stock? How do we know that E-Trade won't have further large mortgage writedowns?

China's Latest Financial Coup: Buy 'H' Shares

Siwei, enjoy your comments. thx for H share discount spreadsheet. do you consider FXI as good proxy for US investor looking for H share investment? what are pluses/minuses of FXI vs. HSCEI?