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VMware, Inc. Message Board

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  • steelerman37 steelerman37 Oct 23, 2008 10:30 AM Flag

    VMware Management is Desperate - VMW 1-year target: $5

    So let me get this straight: Initiating the first ever VMware ad campaign is a sign of desperation? You have no idea how much they're going to spend on this campaign, but you claim that this will reduce R&D spend and flush earnings without increasing revenue? Just to make sure I've got your argument straight before I indicate how offbase you are.

    Here's the thing: VMware puts more money (as a percentage of revenue) into R&D than any of the big three above them in the Software development spectrum. That hasn't changed nor will it change with the addition of an ad campaign. If you follow the Vmware development cycle, you'd know that they are in the process of releasing major new versions of almost all their product lines in the next 9 months, and they will be releasing brand new product lines to expand their overall portfolio at the same time.

    Whether the stock price falls to $5 is always possible, so I won't either agree or disagree with you. However, before making charges about a software company's commitment to R&D, please use something more substantial than a specious link between advertising and this commitment. Even you would have to admit that while Microsoft advetises and deals with innovation by purchasing companies or stealing their products, VMware truly develops new products.

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    • THe technology has a healthy lead on MSFT. Management doesn't (and shouldn't) trust EMC.

      Follow the $$$ trail. CSCO and INTC given special buy-in to IPO and now dump shares? do the research! BIg internal problems. Tucci cutting off his nose to save his face.

      EMC is absorbing VMW into the value stack as virtualization rapidly commoditizes and the race to the bottom accelerates.

      A healthy entry point for April PUTs in the teens during the upcoming santa clause rally.

      Good luck shorts.

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