$42.19
0.11 (+0.26%)
VMware (VMW)
CAPS Rating:
The Company is a provider of virtualization solutions.
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The Company is a provider of virtualization solutions.
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The company has been growing very well, so perhaps the high price would be warranted based on previous performance. It looks to me that they have no moat and other companies are hot on their tail. I don't think the price ($62/share) is warranted given the competition, particularly from Microsoft who is giving away the technology, even though it is not as fully featured. Given that the technology is aimed at small and medium sized businesses, less expensive software will erode VMWare's share of the small business market. They will also lose market share from medium sized businesses to companies producing software that supports 10 GB ethernet.
Use your short term call options to ride the stock up, and your long term put call options to ride the stock out.-with a beta of 5 it will move with the market gaurunteed.