VMWare (NYSE: VMW) NewsBite - VMW Falls on Sales Worries
Posted: Thursday, October 22, 2009 10:11 AM EDT
By: Market Intelligence Center Staff
VMWare (NYSE: VMW) opened at $44.02. So far today, the stock has hit a low of $42.57 and a high of $45.55. VMW is now trading at $43.31, down $1.62 (-3.61%). Over the last 52 weeks the stock has ranged from a low of $17.25 to a high of $45.57. VMW reported earnings this morning, posting a third-quarter profit of $38 million, or 9 cents per share. Excluding one-time items, EMC earned 23 cents per share on revenue of $490 million, beating analysts' estimates of 20 cents per share on $473 million in revenue. However, shares of the stock are falling after an analyst at Primary Global Research noted that the company's software license sales fell almost 16% to $240.2 million, which could be a cause of concern"due to the state of the virtualization market." Technical indicators for the stock are bearish and S&P gives VMW a negative 2 STARS (out of 5) sell ranking. If you are looking for a hedged play on VMW the stock seems like it could be a candidate for a December out-of-the-money bear-call credit spread above the 50 range. [ABR-Seven Summits Strategic Investments NewsBite]
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