IPO - VMWare effect on EMC

Discussion in 'Stocks' started by jimclark, Aug 1, 2007.

  1. I wonder what effect will VMWare IPO have on EMC stock price, per dollar increment.

    If VMWare jumps from initial $22 to say $30...what is the effect in EMC price?

  2. teun


    EMC will initially hold 90% of the shares in VMWare. Considering that VMWare is worth $10 billion at the IPO (30% of EMC value), when the share goes form $22 to $30, EMC share will be up approx. 2.5 dollar.
  3. topdown


    From this mornings GS market report:

    2. EMC Corporation EPS (FY Dec) 2007E $0.69, 2008E $0.84 Buy/Neutral
    (EMC) 18.51
    Source of opportunity
    We are adding EMC to the Americas Conviction Buy List. The combination of
    EMC's 2Q results which highlighted more balanced growth, multiple product
    cycles, and initiatives to increase shareholder value post the VMware partial IPO are
    likely to drive upside and enable EMC's stock to reach our 6-month target price
    of $22 over the next 1-2 quarters (17% upside). As we see it, EMC has multiple ways
    for shareholder value to be unlocked, some of which are very short term in nature.
    For example, VMware's upcoming IPO should take us one step closer to
    investors understanding the underappreciated value of core EMC.