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Ouch


Jack M

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it'll go up. it was at 120 this summer (shoulda sold it then). datacenter consolidation is huge now and VMW has a huge % of the market.

Check out the price/sales and price/book value ratios on VMW... scary high even after today's drop. I wouldn't expect it to be trading at 120 for a while - perhaps a long while - until there is some growth (not just anticipated growth) to justify it. When a bubble is popped, it doesn't often reinflate.

I too recently dealt with an "ouch" - my employer of 10 years and counting:

http://finance.yahoo.com/q/bc?s=SHOR&t=1y

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it'll go up. it was at 120 this summer (shoulda sold it then). datacenter consolidation is huge now and VMW has a huge % of the market.

Don't count on it. Virtualization isn't a silo'd solution anymore, it's a deployment option and much larger companies are simply giving it away. VMWare needs to find a buyer or a means to increase services revenue...it's not going to come by product sales.

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