FB: Liberty League

[Senor RedTackle]

13-Aug-07
19:04  VMW VMware prices initial public offering at $29 per share

Co announced that the IPO of 33,000,000 shares of its Class A Common Stock has been priced at $29 per share. Shares will begin trading tomorrow, August 14, 2007, on the NYSE under the ticker symbol "VMW".

Lead Underwriter: Citigroup, Credit Suisse, Deutsche Securities, JP Morgan, Lehman Brothers, Merrill Lynch Co-managers: AG Edwards, Banc of America Sec, Bear Stearns, HSBC Securities, UBS, Wachovia
Description: A provider of virtualization solutions for x86-based servers and desktops.

The original price range was 23-25 then revised to 27-29.  First trade was $55.

ha...RT was right about underwriting angle. Wachovia had a block of shares at $26 they offered to "preferred clients"..in this case, U89 had a buddy on the inside. The underwriters can't buy the shares themselves but get the fat fees from doing the IPO as well as trading fees from unloading all these hot shares right out of the chute

[Senor RedTackle]

hmmmm...lead managers on vmw listed as follows...

citi, credit suisse, deutsche, jp morgan, lehman, merrill....where might wachovia be?

"Co manager"

[union89]

hmmmm...lead managers on vmw listed as follows...

citi, credit suisse, deutsche, jp morgan, lehman, merrill....where might wachovia be? just bustin ya they are a co mgr...

U89 does not know how it works, but why would U89 lie?

U89 would also never post a picture of a smoking hot chick and claim it to be his wife......

[Senor RedTackle]

Hey RT here ia a little follow up on your VMW call

08:43  VMW VMware: Initiation details (79.31 ) 

We note VMW was initiated by many brokers this morning. Bear Stearns initiated VMW with an Outperform and a $106 tgt based on their view that the co is the right technology (x86 server virtualization) to solve a pressing need (to operate and manage IT resources more efficiently) at the right time (the technology has become generally accepted as dependable). They also cite sustainable leadership in the virtualization and sustainable meaningful mkt growth... As mentioned at 6:29, BofA initiated VMW with a Neutral and a $75 tgt saying it's a leading provider (~90% share) of virtualization software, a thinly penetrated (<5%), high growth mkt in tech that allows multiple op systems and apps to run simultaneously on the same piece of hardware... Also mentioned, Deutsche Bank initiated VMW with a Hold and an $80 tgt. They note, while VMW is the clear leader in the virtualization sector and is positioned for strong revenue and earnings growth, they believe the share price already reflects much of this opportunity... VMW was also initated at Wachovia with a Market Perform and a $70-75 tgt, UBS with a Buy, Citigroup with a Buy and a $100 tgt, Credit Suisse with a Neutral and a $85 tgt and J.P Morgan with an Overweight.

hopefully folks got in when RT dropped the tip when it was in the $60's

Unbeknownst to U89, his broker got him in on 500 shares at $26 a couple months ago.

Well...only plausible scenario RT sees is that U89's brokerage house had a block of shares set aside for them if they were one of the underwriters on the IPO. If they were in the syndicate that put up the cash, then they get preferred pricing...kind of like executive stock options. Since there's no "market" yet prior to an IPO, the $26 price is an arbitrary price. Now granted it's low risk, there still exists a risk that a stock could open on day 1 at, say, $30/share at IPO but tank to $1.00.

So, the short answer is "yes", U89 could have shares at $26.

U89...who's your broker?

Thank You, RT....U89 will be waiting by his mailbox for written apologies from Reg and TDT...

RT, he's an old high school buddy who works for Wachovia.

U89...have your broker do a stop-limit, good til cancelled sales order for $90/share on the VMWare. You'll be thanking me in a year.

let's see....500*$26 = $13,000 paid
                500*$90 = $45,000 sell

pre-tax profit: $32,000....now assuming this happens in the next 12mo, apply short-term cap gain tax of 40%, so net is somewhere around $19,000. Not too shabby, especially when you didnt even know it was happening. Tell your buddy to find more of these. Drinks on you at Shoozapalloza 3

What should U89 do w/ the $19,000 from his investment???


"You need to start bringing me information, Bud"

[Touchdown Tommy]

Fair enough U89, nice work.  Now don't get greedy, better to sell a little too early than a little too late.  

It's not what you know it's who ya know...

[PBR...]

hmmmm...lead managers on vmw listed as follows...

citi, credit suisse, deutsche, jp morgan, lehman, merrill....where might wachovia be? just bustin ya they are a co mgr...

U89 does not know how it works, but why would U89 lie?

U89 would also never post a picture of a smoking hot chick and claim it to be his wife......

did they teach ya to read w/ that there union education? it speaks volumes

and here everbody thought the stork (aka u89) was brain damaged....

[Jonny Utah]

Hey RT here ia a little follow up on your VMW call

08:43  VMW VMware: Initiation details (79.31 ) 

We note VMW was initiated by many brokers this morning. Bear Stearns initiated VMW with an Outperform and a $106 tgt based on their view that the co is the right technology (x86 server virtualization) to solve a pressing need (to operate and manage IT resources more efficiently) at the right time (the technology has become generally accepted as dependable). They also cite sustainable leadership in the virtualization and sustainable meaningful mkt growth... As mentioned at 6:29, BofA initiated VMW with a Neutral and a $75 tgt saying it's a leading provider (~90% share) of virtualization software, a thinly penetrated (<5%), high growth mkt in tech that allows multiple op systems and apps to run simultaneously on the same piece of hardware... Also mentioned, Deutsche Bank initiated VMW with a Hold and an $80 tgt. They note, while VMW is the clear leader in the virtualization sector and is positioned for strong revenue and earnings growth, they believe the share price already reflects much of this opportunity... VMW was also initated at Wachovia with a Market Perform and a $70-75 tgt, UBS with a Buy, Citigroup with a Buy and a $100 tgt, Credit Suisse with a Neutral and a $85 tgt and J.P Morgan with an Overweight.

hopefully folks got in when RT dropped the tip when it was in the $60's

Unbeknownst to U89, his broker got him in on 500 shares at $26 a couple months ago.

Well...only plausible scenario RT sees is that U89's brokerage house had a block of shares set aside for them if they were one of the underwriters on the IPO. If they were in the syndicate that put up the cash, then they get preferred pricing...kind of like executive stock options. Since there's no "market" yet prior to an IPO, the $26 price is an arbitrary price. Now granted it's low risk, there still exists a risk that a stock could open on day 1 at, say, $30/share at IPO but tank to $1.00.

So, the short answer is "yes", U89 could have shares at $26.

U89...who's your broker?

Thank You, RT....U89 will be waiting by his mailbox for written apologies from Reg and TDT...

RT, he's an old high school buddy who works for Wachovia.

U89...have your broker do a stop-limit, good til cancelled sales order for $90/share on the VMWare. You'll be thanking me in a year.

let's see....500*$26 = $13,000 paid
                500*$90 = $45,000 sell

pre-tax profit: $32,000....now assuming this happens in the next 12mo, apply short-term cap gain tax of 40%, so net is somewhere around $19,000. Not too shabby, especially when you didnt even know it was happening. Tell your buddy to find more of these. Drinks on you at Shoozapalloza 3

What should U89 do w/ the $19,000 from his investment???


"You need to start bringing me information, Bud"

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

[Frank Rossi]

Don't watch until after you digest lunch...

http://www.breitbart.tv/html/5937.html

[Senor RedTackle]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

[Frank Rossi]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

If you need access to the 20k, though, there are still some 4.5% to 4.75% savings accounts out there -- It gives you the flexibility to move your money around, to add more money to that rate and to avoid any pre-expiration penalties for early withdrawal.

[Jonny Utah]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

nah, I was way too late and bought it over 100. (Its still doin pretty good)

And I invest with a guy that other people from work invest with from ING.  Hes pretty good but as an amatuer business man (very amatuer) I love learning about new stuff.

And I basically do have some extra free cash that I save, but my local bank always has these CD specials that I just hit up for the first time.  

[Senor RedTackle]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

If you need access to the 20k, though, there are still some 4.5% to 4.75% savings accounts out there -- It gives you the flexibility to move your money around, to add more money to that rate and to avoid any pre-expiration penalties for early withdrawal.

better yet, tax-free municipal money market accounts. Why pay tax on a basic savings account that may pay 0.5% more interest than a money market when you have to pay taxes on it?

[Jonny Utah]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

If you need access to the 20k, though, there are still some 4.5% to 4.75% savings accounts out there -- It gives you the flexibility to move your money around, to add more money to that rate and to avoid any pre-expiration penalties for early withdrawal.

(knock on wood) I dont really need the access to it.  (Im at the first time in my life where I am actually saving up some money)

[Senor RedTackle]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

nah, I was way too late and bought it over 100. (Its still doin pretty good)

And I invest with a guy that other people from work invest with from ING.  Hes pretty good but as an amatuer business man (very amatuer) I love learning about new stuff.

And I basically do have some extra free cash that I save, but my local bank always has these CD specials that I just hit up for the first time.  

Ok..JU. Listen carefully. RT is going to give you the best advice he's ever given. You can PM me for more details if you're serious about getting a nice little portfolio going.

You're in Boston area, right? Ok..good. Look up the local Fidelity Investments branch near you. Go in and ask to set up a basic brokerage account. There may be minimums (5K or 10k...it's been awhile) but sounds like you can cover that.

From here, set up your "core account" as a Mass Municipal Money Market fund. Think of this as your checking account. It's an interest bearing, no tax load money market fund. You get a checkbook and debit card with this...can pay bills, etc. Like a regular bank account.  From here, you can trade stocks, mututal funds, t-bills, etc. You can also do IRAs.  It's all managed via the web and you can do automatic investments, etc.

RT and many of his friends/family been w/ fidelity forever. Absolutely, 100% satisfied. One night about 5 years ago, RT was on the sauce and called up a portfolio advisor at 3am on Christmas Eve. Not only did the dude answer but he spent an hour on the phone w/ RT and his feeback was spot on with what RT was hoping to hear.

Go to Fidelity's website...they're the best one out there, in RT's opinion. In fact, IBM (as well as alot of companies) have turned their entire 401K administration to Fidelity.

Once you get that set up, RT will walk you through some of the funds that have done well for RT.....

[Frank Rossi]

RT,

What do you think about an 8 month 20K CD at 5.8%  Isnt that a no-brainer?

(JU already semi-followed some of RT's advice and bought a half a hundred shares of IBM....not to bad so far for me!

Hopefully JU bought IBM when it was in the $70ish range (about the time RT started posting on LL and would've known JU). Even better, RT put his parents into IBM in 2005 when it was down in the $55/range. That was nuts. Big Blue was worth more split up than the trading price at the time.

Anyway, back to your question JU...on the surface, it may seem like a no brainer IF you have 20K laying around that you don't need for 8 months and you're risk adverse.

However, if this is a lump sum you dont have concrecte plans for, RT could turn you on to a handful of reputable mutual funds that have annual returns in the 10-15% range. The down side is that they are riskier than the CD but the up side is earning potential and liquidity. RT feels the market will stay kind to the smart investor.

Please tell RT some more about what you want to do with this money, your tolerance for risk, any other pertinent details about your portfolio, etc

nah, I was way too late and bought it over 100. (Its still doin pretty good)

And I invest with a guy that other people from work invest with from ING.  Hes pretty good but as an amatuer business man (very amatuer) I love learning about new stuff.

And I basically do have some extra free cash that I save, but my local bank always has these CD specials that I just hit up for the first time.  

Ok..JU. Listen carefully. RT is going to give you the best advice he's ever given. You can PM me for more details if you're serious about getting a nice little portfolio going.

You're in Boston area, right? Ok..good. Look up the local Fidelity Investments branch near you. Go in and ask to set up a basic brokerage account. There may be minimums (5K or 10k...it's been awhile) but sounds like you can cover that.

From here, set up your "core account" as a Mass Municipal Money Market fund. Think of this as your checking account. It's an interest bearing, no tax load money market fund. You get a checkbook and debit card with this...can pay bills, etc. Like a regular bank account.  From here, you can trade stocks, mututal funds, t-bills, etc. You can also do IRAs.  It's all managed via the web and you can do automatic investments, etc.

RT and many of his friends/family been w/ fidelity forever. Absolutely, 100% satisfied. One night about 5 years ago, RT was on the sauce and called up a portfolio advisor at 3am on Christmas Eve. Not only did the dude answer but he spent an hour on the phone w/ RT and his feeback was spot on with what RT was hoping to hear.

Go to Fidelity's website...they're the best one out there, in RT's opinion. In fact, IBM (as well as alot of companies) have turned their entire 401K administration to Fidelity.

Once you get that set up, RT will walk you through some of the funds that have done well for RT.....

You're better off just handing the poor guy a blindfold and a cigarette...