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.

100% per year.

No matter what the market does in any given year (up 15%, down 15%, or flat) there are always dozens and dozens of stocks that go up 100% or more. Our job (OK, my job) is to find those. Another way to think of this is the market is a rolling wealth creating machine. No industry or business can grow 100% per year forever. But, even in a recession, there are probably 50 companies and several industries that have a new cycle, a new product, or a new service that will grow by leaps and bounds for a year or two. This is a fact in the business world every single year. The beauty about trading and investing is we can be in any industry or company with a push of a button. Unlike many changes in life…there is no messy divorce, we don’t have to move, there is no commute, we don’t have to learn a new language (Chinese!), we don’t have to learn a new trade, we don’t lose our pension or health insurance & we don’t lose any friends. Another wonderful aspect about what we do? We usually know if we made a good investment within a month or two, and if we did mess up…we can change again (sell stock A and buy stock B).