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Technology Stocks : VMware, Inc. (VMW) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (29)	8/13/2007 11:44:07 AM
From: Elmer Flugum	Respond to of 358

Virtualization Virtuosity blogs.wsj.com "There’s nothing like a hot initial public offering to get investor spirits rolling, and the market has one coming in VMware, a “virtualization” software company, which unfortunately has nothing to do with the “bullet time” visuals from the Matrix films, but is apparently a bit more useful as an application. VMWare can’t do this, but IPO investors aren’t likely to mind. (Warner Bros.) Will this software firm buck the recent trend among software IPOs, however? Bullish investors better hope so, because on average, 11 recent software IPOs have lost 12% of their value in the aftermarket, according to IPOdesktop.com. If the hype is to be believed, VMWare should do well, as it is pioneering a type of software that reduces the need for servers and simplifies system maintenance. Already, it already has 84% of the companies in the Fortune 1000. (Of course, this begs the question of what it does to expand its market share, but never mind that for now.) The offering range was recently increased to $27 to $29 a share from $23 to $25 a share, and 24/7 Wall Street’s John Ogg says “VMware could price well north of $30.00 per share,” and analysts at Robert W. Baird & Co say it could trade above $40, which would give it a market capitalization of $15 billion. Cowen & Co. analysts say the stock “could outperform the market by 25%-45% relative to the $24 IPO filing mid-point over the next year.” With credit worries roiling stocks, it may be too much to expect VMWare to be the elixir for the rest of the equity market, as a Guardian UK article suggests. “A successful flotation of VMware would be a major boost to the US stock market, which has been battered over the past weeks by the turmoil in the international credit market,” they write." blogs.wsj.com