First taste of VMware

Tough decision, not so much whether to sell, hold or buy. More like, which one to buy: AAPL, VMW or BIDU. All three report Q3 earnings next week. I went with VMW.

1. Down 15% from its high of 114.
2. No serious competition in its field.
3. Global PC explosion.
4. Still a new stock (IPO was in August) that will gather accelerating coverage and institutional buying.

Entry point VMW @ 97.66. VMware reports on Wednesday. The market could continue declining next week, but VMW is a cash cow. So is AAPL, but VMW is the bigger grower short term. I love all the fundamentals, the margins, the numbers period.

From Q2
• Margins: profit 13%, operating 16%
• Growth: quarterly revenue (yoy) 89%, quarterly earnings (yoy) 125%

Debt ($800 million) outweighs Cash ($280 million), the only negative, and the only reason why I have VMware rated an A- stock rather than an A. I'm willing to pay (with a small position) for early entry into a great growth company.