VMW represents 10% of EMC's revenues, and 34% of its growth. VMware beat estimates by 2 cents but missed revenue estimates by 5 million. That could have been due to a couple orders slipping into next quarter. It still had 80% growth. EMC has 6 billion in cash and 600 million in leveraged free cash flow. They can buy any best-of-breed company out there. Plus, EMC owns 85 % of VMW, which is valued at 31 billion, versus EMC valued at 35 billion. The non-VMW portion of EMC's business is being valued at under $4 a share. In fact, after todays haircut of VMW, EMC without VMW is being valued at $3 a share, or a PE of between 5-6. Yes I think EMC is undervalued, now by at least $5-7 per share.