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.
Author: Robert Buderi
Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative.
Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.
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