Wednesday, October 6, 2010

Bookkeeping: Closing VMWare (VMW)

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I have not liked the action in this name the past few weeks - unlike its brothers in arms, this former general of the market has not partaken in "the can't lose market".   Some of those other names ran, and ran, and ran... and ran without a breath while VMWare (VMW) sat on the park bench "only gaining" about 10%.  Yes we are getting spoiled around here, when a stock that does not run 20% in a month is "poor performance".  Not acceptable in this type of market.



Quite a few of the generals are actually taking out of the blue hits even as the broader market stands flat... strange action.  Maybe they all reacting to the carnage in EQIX (now down 30%) as "cloud computing" is not so bulletproof after all.   Wall Street is great taking a valid trend (China will grow the moon forever, therefore every commodity must be run up 400% - see spring 2008; the internet will change the world - buy any dot com - see fall 1999) and causing massive imbalances in prices - this is happening in cloud computing right now.   One of our "cloud" stocks ran up big Monday on a report it was a takeover candidate.... a YEAR AGO (and 75% lower in price)  It's reaching stoopid level but I've been a broken record for weeks ont hat end.

Whatever the case I don't like this relative weakness in VMW and with a gap at $79 beckoning plus a dangerous earnings season ahead for bloated tech stocks, I am going to close out the position here.

No position


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