Cramer Puzzled on EMC/VMware (EMC, VMW, TXN, GOOG, CSCO, INTC, SLB)

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By Douglas A. McIntyre Updated Published
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On today’s STOP TRADING on CNBC Jim Cramer said investors can now focus on what is cheap again and he was positive on Schlumberger (NYSE:SLB) with it to go back to $95.00.  His real picks were in technology: Texas Instruments (NYSE:TXN), Google (NASDAQ:GOOG), Intel (NASDAQ:INTC), and Cisco Systems (NASDAQ:CSCO). 

Cramer was very positive on EMC Corp. (NYSE:EMC) as one of his charitable trust positions, but oddly enough he said he is surprised that it has been been not acting too strong since it still owns most of VMware (NYSE:VMW) after the partial spin-off and IPO.  If you are a reader of the Special Situation Investing Newsletter, you aren’t surprised at all on EMC (sample on EMC/VMW now off embargo).  It looks and feels like the valuations of VMware are in the stratosphere right at the time that the emerging virtualization market is getting rapidly crowded.  The super-low free float has a lot to do with this strong performance.  There just aren’t enough shares for fund managers to have very much of on their books since EMC is hoarding 87% of the stock and almost all the votes.  We’ve seen this play book before on widely telegraphed partial spin-offs like this and VMware is really more of a tracking stock right now than they would have you believe.

Jon C. Ogg
August 17, 2007

Jon Ogg can be reached at [email protected]; he produces the 24/7 Wall St. Special Situation Investing Newsletter and he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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