All Aboard

VMware (VMW - $99.90) is the next big technology stock in my opinion as virtualization software is the next big thing. As an example, Hewlett Packard is reducing the number of server centers around the word from 19 down to 2 (huge cost savings)…all because of the virtualization software that VMW provides (they have 90% of the market share). VMware has 1,051 job listings on its website. This is the true sign of a very fast growing company. Cisco Systems (CSCO) has just disclosed an 8.1% stake in VMW. This is quite rare for CSCO to take such a large stake in a public company and is very bullish in my opinion. In addition, Intel has a 2% stake in the company. Based on the way the stock is moving higher in recent weeks you can see the big growth mutual funds competing with one another to build a position in this stock (I expect this to continue). I am looking for VMW shares to gallop higher in the days, weeks, and months ahead…moving $5+ on some days. This is my favorite technology stock by far. I have taken a sizable position in out of the money upside calls for subscribers.