Fund my Mutual Fund: The Run in VMWare (VMW)

Fund my Mutual Fund: The Run in VMWare (VMW)

I found this post and was flabberghasted by the earnings multiple on this company. It's straight out of the dot-com era looniness. VMWare, which was recently spun off from EMC, makes virtualization software. Don't be embarrassed. You're not the only person who was ignorant of what this is. In layman's terms, virtualization software makes it possible to run several operating systems and applications on the same computer at the same time. A common use of virtualization software is consolidating server space.
This looks like a tremendous short opportunity. It's selling at gargantuan multiples and the most recent 10-Q has hinted that greater competition from better capitalized companies and lower operating margins are on the horizon. Plus at some point, EMC is going to dump the shares; I can't see them wanting to hold on to 86% of this company forever. Cisco and Intel are also major owners of the stock. This probably won't begin to happen until next year, as tech usually outpaces the Q4 rally. Also, they do a large and increasing chunk of their business outside of the United States so they should escape alot of dollar-related pain. I'm going to follow this company, specifically insider sales by these three companies, until they next report earnings. They should provide a clue on how the operating margins are holding up.