Nothing Virtual about VMWare's (VMW) Blowup

I wish I had a virtual portfolio. It would not still own a small trading position in VMWare (VMW). I had made a killing trading this one…until tonight. The tiny remnant position I kept lazily on the sheets just imploded. The stock is down almost 30 percent to $60.

I think Cramer called EMC the cheap way to play it. I thankfully was tsopped out of this one about a month ago. It just got cheaper and only down 10 percent on the news. That’s what is so annoying about a 60 minute daily stock show. In a bad market like this, Cramer just can’t come across helpful. Pathetic really for all the good he says he is trying to do.

I guess storage AND virtualization is just a commodity. There are a ton of stuck people in both stocks. Really stuck. They are both toast.

The claws of the bear are starting to flail around.

Disclosure – Long VMW…until tomorrow.

7 comments

  1. haileris says:

    The problem with VMWare is that they are solving a problem that existed years ago. Today the needs are much grander, “Google Scale,” if you will. The future is in EC2 and Hadoop, not virtualization.

  2. Bruce says:

    Cramer means well but he needs many caveats/disclaimers.

    You can’t blindly follow anyone, not Jesus, not Buddha, not EVEN Cramer.

  3. McLarty says:

    any IT problem this decade that these companies cannot solve?

    I don’t know if that was rhetorical, but I think I know of one. Deep Packet Inspection and the bells and whistles that go along with it’s benefits.

    If you believe the internet is growing too fast -> Sandvine. TSX:SVC. I’m long.

    To top it all off, they are founded and built on the same talent that started RIM…University of Waterloo.

    They can’t catch a bid recently because they had their first quarter of negative growth. The recent quarter broke their 12 quarter streak of taking revenue from $500K to +$20M per quarter!!!

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