I had written previously about the disconnect between the value of VMware (VMW) and its 86% owner EMC (EMC). My first post on this had been before the VMware IPO, when the VMware IPO price range had been increased to $27-$29 per share. At the time EMC shares were around $19.
Part of the reason for the VMware IPO was to unlock some of the value of this new growth engine for EMC shareholders. This has hardly happened. Today VMware shares trade hands above $90 per share, with EMC around $21.
Eric Savitz brings this continuing disconnect to its ridiculous conclusion today, wondering whether VMware's market cap will reach parity with EMC.
Analysts and bloggers have been pounding the table to buy EMC, waiting for the situation to adjust itself. However, so far it shows no signs of letting up.
Today, again, VMware is up and EMC is down.
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