Mea Cupla, guys. Thanks so much for clarifying. I've often heard of institutions to stash away their shares in virtual lock-boxes(in this case, the divesting company, but, in many cases the financial institutions with huge holdings).
At $40, VMWare is worth about 16B in mkt cap. Looking at the financials, the margins are quite low. That bothers me. At $50/share, it will be under $20B in mkt cap (at current outstanding shares). Barring a seismic shift to a competitor like Citrix or some open source, this stock can only go up. The question is whether this company (on a longer-term basis) sustain say a 30 to 50B in mkt cap.
My other concern is its profit margins (@15.5) which doesn't seem all that much for a software company. Compared to Microsoft (24%), it seems low but compared to Citrix (10%), much better. Is that subject to improvement ? If its goes down, then, we can't see those stratospheric valuations in the order of $30-$50B. Please comment.
I do work at fortune 100 and most/all non-database servers are being repurposed with VMWare for a few years now. Is there still further growth here?
How will cloud computing increase or add to its presence?
IBM is advertising about cloud computing now. What are its real offerings and how will affect competition in this field?
It will go to 50+ based on its own merit; meaning, sponsorship of all types of buyers. How can a float of 254MM be considered too low? And, a 10.5MM shares short considered too high? Your conclusions are correct but the assumptions are wrong