Last week I posted my 4 stocks to buy in 2012, but there are still some other stocks I love but that just did not make the cut. So this week we will be focusing on a specific stock each day.
First up is VMWare (VMW). For those that have followed this blog for a while, I’m sure you remember my love-fest with EMC Corporation (EMC) a couple years ago. Well it seems like the virtualization play has been taking a while to develop, and 2012 may be the best year thus far.
Since the IPO, VMware has ranged from $30 to $110, with much of the growth done within the first year. As the economy took a tumble, the momentum of virtualization got stalled. Now that companies have survived the financial mess, now it is about rebuilding and innovating – companies will look towards the services offered by VMware and similar companies.
The bright spot for VMWare right now is that both EMC and Cisco (CSCO) are growing in the sector and they both have direct ties to VMware, which gives it instant credibility and a strong consumer base.
A negative side though is that the competition is starting to rise. A theory I have long held is that the first to the sector never lasts the longest. Ultimately new competitors will drive it out; however, that is generally a couple years out.
For now, 2012 looks to be a good year for VMware.
From a technical aspect, VMware is currently trading within a range. Good spots are obviously on the beaks and bounce off key areas.
What do you think about VMware? Leave a comment below.