VMware IPO

opus

Did anyone grab any shares in the long awaited VMware IPO on the NYSE today? I think they're a company with a lot of growth potential as I read only 3% of the world's servers run virtualization software at present and that is their main market so huge potential for growth.

I picked up a few shares after trading started, up a few percent already but I plan to hold onto them for the long term.

A Random Walk

It's an interesting company but the IPO has valued it at a significant multiple and it has huge potential competition. I'm interested but not at these prices (although I said that about google when it was at a third of its current price).

opus

The clincher for me was that in the past few weeks, Intel & Cisco both bought chunks of the company pre-IPO. So you've got quite some inter-relations going on there now, Intel on the hardware side, Cisco on the networking side & the parent company EMC on the storage side. I also liked the fact that their software is used by 100% of the Fortune 100 (which includes Microsoft!).

Article from Business Week is here.

bbbbb

Virtualization is very cool technology & will definitely become mainstream the way mice & icons became mainstream for the desktop
VMWare are the tiger woods of the field, but they're not the only player. Microsoft are a long way behind, but that could all change.

gavinsblog

Got in @ $52. Might be working looking at EMC too, they are looking cheap given the success of the IPO.

opus

After today's slew of announcements, the share price is up 50% since Aug 14th. I'm still of the opinion that it's got a bright future but must admit the temptation to lock in some gains is getting high.

Any opinions?

catching_streams

Buy. Fantastic technology with great benefits. The software will become ubiquitous and essential for organisations. I missed out.

techguy

Hey guys, I am currently in the energy,banking and construction side of things and have been on the lookout for a tech stock that would be worthwhile. I would be interested in buying some VMWare.. I've just tried looking at them via my online a/c via davys but it can't give me and prices are charts??
Also, as far as I can see they are listed in the sterling also?? Whats currency are you guys buying with?
I know shares would be cheaper in dollars but isn't sterling a lot more secure at this point in time??

parkiecik

vmw market cap: 30B
EMC market cap: 40B

Would anyone agree that at the current valuation EMC looks cheap. EMC still owns 90% of Vmware and that means that the rest of EMC business is valued at only 13B.
That iss cheap in my opinion given the fact that all this virtualisation is fueling SAN sales.

techguy

I just bought VMware at $79.31 (only €500 worth) i'm only young so I plan on holding on to these for the very long term.. Hopefully it will pay off..

PDelux

Would anyone agree that at the current valuation EMC looks cheap. EMC still owns 90% of Vmware and that means that the rest of EMC business is valued at only 13B.
That iss cheap in my opinion given the fact that all this virtualisation is fueling SAN sales.

This was in the news yesterday and why EMC was up nearly 8% on the day. Some analysts were saying it should be worth $23, others at least $25.

opus

There's an interesting article in the Register about what will happen if VMware becomes worth more than EMC (in market CAP). One other rumour I heard was that Diane Greene (current VMware CEO) is seen by some EMC people as a possible successor to Joe Tucci (current EMC CEO). NB totally just rumour & hearsay!

opus

techguy wrote: »

I just bought VMware at $79.31 (only €500 worth) i'm only young so I plan on holding on to these for the very long term.. Hopefully it will pay off..

It's going well so far, currently at $120. Any bets as to where it's going to finish at the end of '07?

techguy

What's happened?:eek:

Haven't even looked at this stock for the last month..must go and do a bit of reading on them..

shanethemofo

Oh god. Sell Sell Sell

techguy

why? I'm not gonna bother i only put in €500 so there's no real point..I'll just ride it out..

What caused the drop..other than the apparent major tech sell off in the states today..?