VMware (NYSE:VMW)

CAPS Rating: 4 out of 5

VMware is a leader in software for virtual computing, allowing companies to integrate and manage their cloud infrastructure.

Recs

5
Player Avatar MrOneHundred (30.32) Submitted: 1/29/2013 1:21:18 PM : Outperform Start Price: $78.06 VMW Score: -14.13

It's a trap!

It's at its 52 week low, and my own trend analysis on stocks shows a good chance of bouncing back in a significant way when a stock plummets more than 15% in a day (unless there's significantly negative news). Especially when strong, blue chip stocks are involved. "Institutions can't repel great deals on this magnitude!" VMWare is losing market share to some competitors, but it is still a major player in its business. I don't believe it's prospects have diminished to a point where this price accurately represents its market value. Some important figures (IMO):

P/E: 45.28 and 92% approval from Motley Fool All-Star Players show strong, positive sentiment towards this stock.
EPS: 1.72

ROA: 6.60 (Industrial Average: 7.90)
ROE: 10.50 (IA: 11.70)

Accounts Recievable Turnover: 6.80 (above IA)
Asset Turnover: 0.50 (IA: 0.80)

PEG Ratio: 45.28/28.40 = 1.59

The statistics aren't the best I've seen, but they're also above average.

Member Avatar MrOneHundred (30.32) Submitted: 3/2/2013 3:29:18 AM
Recs: 1

I was a bit early on the call. 900 jobs cut, I think made this stock a lot less desirable to investors. With the announcement of this article, I think I see a shift in demand and an opportunity for upwards momentum.

http://www.marketwatch.com/story/dell-and-vmware-deliver-converged-infrastructure-solution-optimized-for-desktop-virtualization-2013-02-27

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