Still looking for your technical advice...for what it is worth. Since the company recently tested its 200 day moving average, failed the test and since then has been in a downward spiral and has now blasted through its 50 day moving average and is continuing to go lower, I cannot help but ask what your technical charts are telling you now? Or have you given up on cheerleading for VMWare?
Paypal is not the first and certainly will not be the last to switch from high cost VMWare to lower cost solutions. Now that IBM, Microsoft and all those that support OpenStack are targeting the huge margins and huge market share of VMWare, there can be only one direction for VMWare's margins and market share...DOWN! How long can VMW support its 40+ P/E?
You are right I am not a technical trader but I am interested in your views regarding VMW. It seems to me that long term technicals show this stock having lower highs and lower lows. Also, did it not just test its 200 day moving average and then back off rather quickly? Isn't that a bad technical sign?
First Hyper-V and now IBM throws another haymaker:
Can VMW continue to prosper? Or will this 1-2 punch from these tech heavyweights knock them out?
Now that VMW looks like it will hold above 74 I aaume that you think that smart investors should buy this rally. I still think that smart investors sgould sell this rally in VMW. Time will tell
Good question! For those who do not have your insight, the first question is: are margins being squeezed? The answer is: YES! The next question is: how far will they get squeezed? The answer is: only time will tell. So, the third question is: how long can the company's PE stay at these elevated levels? And the answer is: as long as the margins continue to be squeezed, the PE will keep adjusting downward.
Whenever a so called growth company with a 40+ PE multiple starts to lose market share and begins to feel margin compression, it is a good idea to sell the rallies. At this point EMC may be the only thing keeping this stock from going lower.