VMware (VMW)
The Company is a provider of virtualization solutions.
Recs
jdawg1847
(97.74)
Submitted: 9/27/2009 8:36:51 PM :
Start Price:
$38.92
VMW Score:
-1.61
50 P/E in a P/E compressing market.
Recs
tomk0508
(90.37)
Submitted: 7/7/2009 9:08:59 AM :
Start Price:
$27.91
VMW Score:
-24.55
Valuation does not accurately assess future revenue potential for this company
Recs
netteligent
(72.40)
Submitted: 4/16/2009 6:11:19 AM :
Start Price:
$30.00
VMW Score:
-8.83
Too much hype...nosedive ahead.
Recs
geertj
(< 20)
Submitted: 2/19/2009 5:53:37 PM :
Start Price:
$22.20
VMW Score:
-40.66
In the short term this stock may grow as companies turn to virtualization to relieve budget pressure.
In the longer term however VMW will underperform. When people say cloud computing the obvious pick is VMware which means that expectations on being able to tap into this market are priced in this stock. However in my analysis VMW will not be able to tap into the cloud market as expected because of three reasons:
1. Most cloud computing shops use cheap open source virtualization software such as Xen or KVM. VMware is very costly software which often costs more than the physical hardware it runs on. As cloud computing will become a commodity and players will compete on price this becomes an issue. Even today, I doubt that the margins on the current Amazon's web services prices (which set a benchmark price for the entire cloud industry) are such that they could incorporate VMware software.
2. VMWare prides itself on graphical management tools, and it sees the hypervisor as a commodity. But in a cloud environment you typically have big providers such as Amazon and Rackspace who have the expertise to do without the management tools. In addition to this the size of clouds is such that you need automation rather than graphical management tools. This automation can be achieved much more easy with open source solutions that have open APIs than with VMware.
3. VMWare doesn't have its own operating system which it is spead very thin on trying to make ESX become an operating sytem, and it also puts VMW in a negative competitive position against vendors who do have an OS such as Microsoft and Red Hat.
Recs
SwordAgain
(79.90)
Submitted: 1/14/2009 9:12:32 PM :
Start Price:
$21.95
VMW Score:
-55.59
1/15/09 Pitch: Downthumb. Earnings 1/26/09, 5:00 PM. Company is still aggressively hiring, despite channel checks that indicate soft demand for its products. High P/E and too much optimism for growth prospects given this environment.
Recs
hohk
(< 20)
Submitted: 1/5/2009 12:59:58 PM :
Start Price:
$23.51
VMW Score:
-51.24
Interestingly, we agreed on a possible scenario for the first half of the year. We both see a very tradable rally going into spring. Then, when we get even more earnings disappointments at the end of the first quarter and warnings at the end of the second quarter, we could see another test of the November 20th lows. Earnings disappointments are the catalyst for protracted bear markets. But the wild card is the coming economic stimulus package. We’ve never been in a situation like this.
Recs
Bronscap
(31.47)
Submitted: 12/1/2008 8:13:48 AM :
Start Price:
$19.00
VMW Score:
-88.83
Great company and balance sheet but I think it's overpriced at the moment. I'd buy it if it was a bit cheaper.
Recs
BrianRuth
(99.23)
Submitted: 9/21/2008 4:04:23 PM :
Start Price:
$30.05
VMW Score:
-47.21
Not a bad company, but 40 times earnings is too expensive for almost anything in an environment like this.
Recs
greenwave3
(96.35)
Submitted: 8/6/2008 11:45:22 PM :
Start Price:
$34.62
VMW Score:
-30.94
Growth? Yes. But not enough to merit a valuation at 9 times book and 44 times earnings.
Recs
wickedfool2k
(20.60)
Submitted: 8/4/2008 5:19:08 AM :
Start Price:
$36.02
VMW Score:
-24.99
With company revenue growth slowing down, the stock price cannot justify the valuation. Will go back down to 20s
Recs
INTMICOMM
(< 20)
Submitted: 7/23/2008 10:15:12 PM :
Start Price:
$36.70
VMW Score:
-24.44
Stock is breaking down and has no support.
Recs
iamluckyfool
(24.41)
Submitted: 7/22/2008 9:18:17 PM :
Start Price:
$32.41
VMW Score:
-39.11
too many competitors. P/E of 63 not justified
Recs
ongkaili
(< 20)
Submitted: 7/19/2008 7:49:23 AM :
Start Price:
$38.53
VMW Score:
-17.77
another tech bust.
Recs
wiredmotley
(48.33)
Submitted: 7/14/2008 11:20:59 AM :
Start Price:
$40.03
VMW Score:
-11.88
Fundamentally in big trouble. When a company loses a CEO/co-founder, that is usually a strong sell signal. Technically in huge trouble. It gapped way down (a crash really) and is currently trading well below the 50 Day and 200 Day Moving Average which is very bearish. Stock price is now lower than ever. There have been some negative divergences in the On Balance Volume, The RSI and the Stochastics from December 2007 to May 2008 which simple means that this stock has been running out of gas so to speak.
Combine all these issues with the fact that you have a large cap company with a PE Ratio (not totally conclusive by any means) of over 67...
Recs
osopimpin
(< 20)
Submitted: 7/10/2008 12:23:24 PM :
Start Price:
$38.19
VMW Score:
-17.69
monopoly is disappearing
Recs
kevinq64
(< 20)
Submitted: 7/2/2008 10:45:45 PM :
Start Price:
$55.15
VMW Score:
+14.06
Microsoft's move into VMWare's only market with a dramticaly lower price will commaditize the market. Without a stronger portfolio of other products the price push will only make VMWare a bit player over time
Recs
Dchadmoore
(44.35)
Submitted: 6/12/2008 2:45:07 PM :
Start Price:
$64.89
VMW Score:
+21.01
just checkin it out
Recs
DPD316
(< 20)
Submitted: 5/19/2008 10:48:50 AM :
Start Price:
$70.78
VMW Score:
+20.88
RELEASE THE PRESSURE AND GET TOP EARNINGS.
Recs
Recs
Lost2MuchMoney
(48.24)
Submitted: 4/17/2008 5:31:18 PM :
Start Price:
$56.85
VMW Score:
+9.39
Don't understand why people think this is something extraoradinary.
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