Portfolio Update…

I have made a few tweaks to the portfolio.  I tag all the stock picking posts with the “Portfolio” category.  That is the bit bucket if you need to review the past.  I have been buying VMW down here around $76-78 range.  There are many reasons for this, but first I want to say I was not long into the print.

I thought the stock (i.e. investors) had gotten ahead of itself and the dynamics of the market were changing.  Those are mutually exclusive concerns.  I debated valuation with one analyst in December who had VMW as his best idea.  I thought the price needed to return closer to the 2-2.5 year support level to be long.  I highlighted the support level in this chart.  There are few other reasons I like VMW.  

1. This article says that “VMware bought back 5.1 million shares in 2012 at an average price in the fourth quarter of $87.83, and a total cost of $468 million.”
2. To the left is a chart I produced from form 4 filings that shows EMC bought 3.3M shares of VMW at an average price of $88.79 for a total of $293M.  Between EMC and VMW, they $761M buying stock in the upper $80s.  
3. Their business model is not broken and they will successfully navigate competitive threats, but I like companies that have a power position in a platform stack.  
4. In the long term, I think of EMC and VMW as one.

I am working on a couple of technical posts on networking and SDN; shocker!  I am traveling out to SF next week, so I hope to have some time on the plane to transcribe the text in my head to the text on the screen.  I remain a happy long shareholder of CTXS, VMW, LNKD, AMZN, AMT, BRCM and QCOM.  Still vexed by the GLD position, but every portfolio has their dogs.  I was kicking myself earlier this week because I wanted to take the funds from the closed CCI position and go long CL1, but I did not pull the trigger.  I am still looking for an entry point.  

/wrk