EMC Stock Follows VMware Up—Still “Insanely Cheap?”
Last week, we posted a piece on EMC (NYSE: EMC) raising the price of the planned IPO of its virtualization subsidiary VMware. Well, with the summer’s hottest IPO slated for tomorrow, we have to note that EMC’s own share price is climbing today. As of now, it is trading at $18.87 a share, up $1.15 (6.5 percent) for the day. It has been as high as $19.10, within striking distance of its 5-year high of $19.84 hit last month. It looks to be a good couple of days ahead for EMC.
One thing that might have helped is that TheStreet.com put EMC on its “Top 10 Rocket Stocks for This Week” list. Writes columnist James Altucher: “[TheStreet.com’s Jim] Cramer believes VMware could go public at $60 a share, giving it a $2 billion market cap. If that’s the case, then the 90% of VMware that EMC will continue to own would be worth some $18 billion. Back that figure out of EMC’s entire $37 billion market cap and EMC looks insanely cheap at $19 billion (without VMware).”
That oughta help.