Wednesday, October 24, 2007

Bloomberg.com: VMware Outpaces Google Since IPO on Program Prospects

 At the moment, in terms of market cap:

EMC: $46.94B

VMW: $39.64B

Given VMware's rise, EMC's lower stock price puzzles some analysts. EMC's shares fell 25 cents, or 1.1 percent, to $23.11. The company also reports earnings this week.

Even if VMware's shares are only worth half their current price, EMC is an attractive stock, said L.R. Burtschy's Meeks. While his fund owns neither stock, he's trying to persuade the family to buy EMC.

``Fifteen dollars of EMC value is VMware, yet EMC is trading at $22.88'' as of last week, Meeks said. ``That is saying that the rest of EMC is worth all of $7.''

It's going to be pretty amusing if VMW's mkt cap surpasses EMC's, since the latter is majority owner of the former. 

We are deeply into the irrational exuberance zone again; the inevitable "market reset" is going to be ugly...

Bloomberg.com: Exclusive

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