54ish looks cheap, but while DOW moved higher, VMW traded lower. not good perhaps
good luck to all longs.
I wonder if short sales shares are available now since the decline? I would not be surprised if it is available to short now.
it only looks cheap at 54 because it is coming down to earth after being ridiculously overpriced.
i would wait until the post-IPO lockup period ends before getting in, i expect it to be in the 30s at that point.
With a projected growth rate of about 45%, you shouldn't be paying more than a 45 multiple for this stock, not in this kind of market. With a forward (2008 year end) eps of 1.17, VMW is priced ahead of itself even at 45x1.17= $52.60
I think this stock will bottom out in the mid to low 40's.
But what do I know? After all, I haven't posted here since this post a long, long time ago...
I wouldn't buy it now, I got out this morning with a sizeable loss at 58.50
In my experience stocks that gap down like this usually drop some more before finding a support level
In retrospect we should have known that VMW just couldn't sustain the 80-90% year-2-year revenue grow and thus the high valuation of the stock price but hey ... it's all about momentum
I put my money in AAPL (Apple) today