VMware (NYSE:VMW)

too many competitors. P/E of 63 not justified

It lost the CEO, lowered its guidance and paid dearly for it, but the technology is still attractive, its position is still strong in the market, and we'll see VMware make a move higher in the next year or so. Mid-term trade as it moves back up to 50.

another tech bust.

Lose CEO. Lower Guidance. How much worse can it get?

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...

I work in the area which VMWARE competes. They really have no competition. The Microsoft product is far behind the feature set which VMWARE has and is not going to have what VMWARE has today until 2011 from what I have been told. Xen is the only other major player in this area, but it is open source and has not gained traction in enterprise accounts. Xen is a nice product but it is only being deployed by research and development shops. Every customer I deal with is converting their environment to VMWARE.

Everyone doesn't need this product but they want it. Small shops spending $2k on a VMWare license can do that rather than spend $4k on two new servers. It's easy math and it's a robust product. The free variants of server virtualization cannot match VMWare and any techie will recommend this product in their DC over any thing else.

Entry point of software is attractive for a small office. ROI for large enterprise customers is a no brainer.

I don't think we'll double money here but I feel a $50 price tag is NOT out of the question and is really where this stock belongs.

monopoly is disappearing

No so sure about this one with the recent departure of Diane Greene, but I bought it during the IPO and gave it a 3-5 year 300% increase over the $57 per share I bought it in a few days after the IPO. The reason for this was the market position of the company and I still feel this hasn't changed even with its recent ups and downs. Whenever the market can shake its bearish gitters is when the growth potential of this company will become more attractive to large institutional investors. In the meantime it will be a wild ride, but hang on...

Paul Maritz is a perfect fit at VMware and will position them for the future. Virtualization is all the rage in enterprises trying to cut energy costs.

They have a huge head start on the competition and are well positioned for the future. Paul's expertise in cloud computing can only help VM realign for the future.

I use VMware everyday at work and I cannot describe how much of a blessing it is.

Even with a P/E of 65, VMW is a buy. Hold onto this stock.

Good position to jump in.

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

I think this stock has finally been beaten down to a supportable level. VMWare is still the standard in our large telecom & has proven itself to be reliable.

just checkin it out

Strong company, with groundbreaking technology that REALY allow for lower costs, more flexibility and green IT. Their customers are not only users - they are fans of VMware.

They are by far leaders in the market they created, and every single IT analyst - from Gartner to Forrester - would agree that they still leave any competitor in the dust for a large margin, while the market opportunity is still huge.

VMware changed the whole IT game by reinventing the way computers and datacenters are used.

RELEASE THE PRESSURE AND GET TOP EARNINGS.

virtualization has a great future.

They are way ahead of competitors' technology and yeah, what a fabulous company.

Virtualization will only get more pervasive, and VMware has the first mover advantage here.