There isn't much sharp that can be said about these companies's relative valuations.
NTAP is a $8B company excluding cash and debts, EMC $12B excluding those and VMW. NTAP is almost 100% owned by institutions, EMC 80%. NTAP is expected to grow much faster over next 2 years.
VMWare is growing 2 times faster than EMC is.
EMC *excluding VMW* is 3 times the size of NTAP, and EMC has stronger market share and more cash on the balance sheet. EMC's valuation excluding VMW would be MUCH higher than $19 billion relative to NTAP.
EMC shares are a much better way to purchase VMW
I actually had answered your repeated argument last week.
"Shorts can always try to short enough to make it lower, but it will go up with so many shorts having sold around here.
As I said, it will double in a year. Forward P/E is only about 40, while growing rate is 35% and deferred revenue is growing 48%!!!"
I confident in the long term this stock will be a lot higher, but for now it's just been a good trading stock. Just when you think it's going to explode to the upside it sells off. If you are a trader and have good timing you can make a lot of money on this stock. jmo
VMware is and will be growing very rapidly and organically in all cylinders, from license to service, from US to Europe and Asia. Obviously you are missing a lot of things. Its operation is working great.
Just food for thought and many of you will disagree. VMware has the best technology and Microsoft has no chance of causing VMware problems. That being said the valuation is crazy. They exceeded Q1 off of a very low baseline. Q2 should be similar. They have no chance of reasonable growth off of the Q3 and q4 numbers from 2009. The other thing to realize and I love VMW technology is that
BMC has 6.8M market cap and 2B revenues
CA 10B mareket cap and 4.2B revenues
SYMC 13B market cap and 6B revenues
INTU 11B and 3B revenues
VMW 24B and 2B revenues
This makes no sense and same logic as why the housing market crashed or the first .net implosion. Great company, great product, wrong valuation.