Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Knight who wrote (88)	10/24/2007 1:59:04 AM
From: Glenn Petersen	Respond to of 358

You are right in pointing out that the valuations are not in balance. That differential will remain unless EMC monetizes the imbalance by spinning out the VMW shares to its shareholders (which is not going to happen). This has to be very frustrating for the EMC shareholders. On Wednesday, October 24, we'll get our first look at the real VMware (NYSE:VMW) earnings. "Consensus" estimates are still varied from source to source, but we have First Call on last look as showing $0.17 EPS on $332.5 Million. We have another source at $331 million, but the truth is that this doesn't matter. The highest estimate we have seen is $352.1 million and after the massive performance any logic would dictate that this has to blow away all of the high numbers and then some. If not, then it's just another overpriced hi-flyer. 247wallst.com