Thursday, July 22, 2010


Similar to the time soon after VMW's 2007 IPO when EMC's 87% stake in VMW was worth more than all of EMC's own market cap, VMW has again been climbing in value relative to EMC for the past half year.

My trading instincts tell me that the arb isn't wide-open enough to consider putting on a trade yet, as I prefer more ridiculous blown-out trades to begin reverting before entering, but something to keep an eye on.

I welcome comments regarding EMC's worth outside of its 80% stake in VMW.