Go Short on This Overvalued Tech Stock

VMware, Inc. (NYSE:VMW) — This subsidiary of EMC Corp. (NYSE:EMC) is a leader in virtualization software. VMware reported strong second-quarter earnings and was raised from a “hold” to a “buy” by analysts in July. But recommendations are being lowered because of a sharp decline in orders from the federal government and the financial services industry. The stock is very expensive at 63 times earnings, and the stochastic has issued a “sell” signal from an extremely overbought condition. Sell VMW short at $95 or more with a stop-loss at $100. The target for this trade is $83.

VMwareTrade of the Day Chart Key

Article printed from InvestorPlace Media, https://investorplace.com/2011/10/go-short-on-this-overvalued-tech-stock-vmware-vmw/.

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