VMWare Inc Class A Common Shares (VMW)

[ulfahl]

$VMW target pps $115

Catch This Cloud Stock Before Its Next Big Ascent
VMW staged a high-volume breakout with a strong MACD buy signal
By Sam Collins, InvestorPlace Chief Technical Analyst | Jul 31, 2014, 1:36 am EDT

VMware (VMW) — This subsidiary of EMC Corp. (EMC) is a leading supplier of virtualization software. According to S&P, it is well positioned to leverage its dominance in the server virtualization market and should benefit from an economic uptick in emerging markets.

Last week, the company reported Q2 earnings of $0.55 per share, which was in line with estimates. Revenues increased 17.2% to 1.46 billion, which was at the upper end of management’s guided range. Full-year earnings are estimated to increase to $3.52 per share in 2014, up from $3.37 in 2013, and $4.22 in 2015. Analysts’ mean target is $110.66.

I last recommended VMW on March 12, when it was trading at $103.68, with a target of $115. The stock topped just under $113 in early April, and then fell under $95. It consolidated in a rectangle with support at its 200-day moving average until Wednesday, when it staged a high-volume breakout with a strong MACD buy signal.

Buy VMW at $100 with a trading target of $115. Long-term investors may want to buy shares at the market for long-term participation in the hybrid cloud sector.

http://investorplace.com/2014/07/trade-day-vmware-vmw-2/?sid=PU8353&cp=OZDT&ct=20140731&cc=eletter&en=4088307&cpp=OZDT&enn=4088307#.U9oiofmSxUo