- When Microsoft Attacks!

When Microsoft Attacks!

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When Microsoft Attacks!

Wednesday, 02 July 2008

VMWARE INC (VMW: NYSE)
VMware is a sexy tech company that made investors a lot of money on the way up. It had a huge IPO in 2007 and climbed to lofty heights.
But a few weeks ago, my friend Cash McDash called out VMW as a strong potential short play. (You can verify the call for yourself. See “This High-Tech Darling Could Crash and Burn.”)
In recommending a short in the $65 area, Cash noted (among other things) that competitors could put a big dent in the VMware story.

Sure enough, one of the biggest and baddest competitors showed up a short time later... none other than Microsoft. News that Microsoft will be offering a competitive product -- at a sharply lower price, no less -- has sent VMW shareholders running for the exits. The stock probably has further downside ahead.

Countrywide CEO Angelo Mozilo has sold 40 million shares of Countrywide

Last week, Countrywide Financial Corp. needed to borrow $11.5 billion to fund new loans. The surprise announcement crushed the stock…and sent the major indexes tumbling in its wake.
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Stock ITNS could be a big turn around play!

My new big pick is ITNS.Keep in mind that ITNS is trading well off from it's high made just a few months ago. I don't know if it will ever reach that high again but if it did, in theory...
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This kind of thing happens a lot to hot new issues. Six to 12 months after the IPO, reality comes barging in. If it’s not a bruising competitor like Microsoft, it’s something else that pours cold water on the enthusiasm. You see it a lot with glamour stocks that get ahead of themselves.

As a new-issues trader who goes both ways, my friend Cash McDash loves these situations. He’s got an eagle eye when it comes to spotting highflier short setups.

If you don’t mind dabbling on the “dark side”... or if you just want an early warning on some of the high-profile longs in your portfolio... you should keep tabs on what Cash has to say. Stay tuned for more on that front soon.

Warm Regards,

JL

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