what has changed since last month's high of $85? I'll tell you
1. VMW beat the revenue by 100 million and the bottom line by 4 cents
2. kept the full year revenue unchanged despite removing the Pivotal revenue!
3. GE invested $105 million in Pivotal
4. EMC bought 420,000 shares (most likely 600,000 after today)
5. UBS almost doubled their stake
6. Harbor and Vanguard increased their stakes
But here's the thing - VMW officers and directors are selling - they do not buy shares.
Look at what the officers do. You think EMC buying is indicative of the forward success of VMW? If it is so undervalued, tell me why did John Egan sell 15,000 shares at $73.62? David Strohm 10,000 shares at $91.81? Dawn Smith over 13,000 shares at $89.75? Eschenbach 5400 shares at $88.11, and Paul Maritz 161,000 shares at $86.66?
You want to say insiders buy the shares - fine. EMC is not an insider, it is a majority owner and will buy shares regardless of the business outlook. Officers and directors do not buy VMW shares, that is a fact.
Those were just a handful of the sales going back to November. Go back further and you can find lots more. EMC is the only one buying shares.
I think the people running the company have a better handle on the business than EMC does.
Show me all the officers and directors pulling money out of their pockets to buy 10,000 shares each, then I'll take notice that insiders are buying. Right now - insiders only sell.