Author Topic: DVMT - VMW Tracking Stock  (Read 22117 times)

netnet

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Re: DVMT - VMW Tracking Stock
« Reply #10 on: September 06, 2016, 03:51:16 PM »
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the public vmware common is not owned by denali. it would not be worth zero in Denali bk. denali does not own 100% of vmware. it would be worth what vmware is worth. again if vmware doubles it's earnings and the tracking stock is tracking that performance of vmaware how could it be a zero if dell goes bk? in my mind it shouldn't. if it could that is a disaster for owners of this tracker. imagine owning a stock that trackss the performance of a company that doubles its eanrings over your holding period but you end up with ZERO.

The VMWare common is not the same as the tracking stock, it is an equity holding in Denali, period. Whether it should or shouldn't be is another question...In bankruptcies why should the court be able to undue contracts with third parties, and claw back monies paid up to 2 years prior? it is what it is. And the tracking stock would sink with Denali, don't be in denial!


roark33

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Re: DVMT - VMW Tracking Stock
« Reply #11 on: September 06, 2016, 11:21:47 PM »
netnet--kudos for the wordplay....

undervalued

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Re: DVMT - VMW Tracking Stock
« Reply #12 on: September 07, 2016, 11:56:00 AM »
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(there are about 423 million VMW shares; 343m are owned by EMC, 80m are owned by public shareholders)

One question regarding VMW, currently the Market cap of VMW is 31B with 423m outstanding shares, this includes Denali's 81%, right? So if I have enough money to purchase all available VMW stocks, I can only buy a total of 80m shares? And of that 80m, looking at Google Finance, Inst. own is 76%. This means 60.8m are owned by institutional investors and I can only purchase 19.2m? Did I interpret this information right?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

johnhuber

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Re: DVMT - VMW Tracking Stock
« Reply #13 on: September 07, 2016, 01:24:25 PM »
Quote
(there are about 423 million VMW shares; 343m are owned by EMC, 80m are owned by public shareholders)

One question regarding VMW, currently the Market cap of VMW is 31B with 423m outstanding shares, this includes Denali's 81%, right? So if I have enough money to purchase all available VMW stocks, I can only buy a total of 80m shares? And of that 80m, looking at Google Finance, Inst. own is 76%. This means 60.8m are owned by institutional investors and I can only purchase 19.2m? Did I interpret this information right?

Yep, roughly 80m shares in float (I don't know how much institutional investors own offhand). But there are about 423m shares outstanding in total. The public owns around 80m, and Dell owns the other 343m. There are 223m Dell Class V shares now trading under DVMT (which is the Dell-issued tracking stock that tracks Dell's stake in 223m of the 343m VMware shares that Dell holds). 
I manage separate accounts for clients: www.sabercapitalmgt.com.
I talk about investing at www.basehitinvesting.com.

undervalued

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Re: DVMT - VMW Tracking Stock
« Reply #14 on: September 07, 2016, 01:34:15 PM »
Quote
(there are about 423 million VMW shares; 343m are owned by EMC, 80m are owned by public shareholders)

One question regarding VMW, currently the Market cap of VMW is 31B with 423m outstanding shares, this includes Denali's 81%, right? So if I have enough money to purchase all available VMW stocks, I can only buy a total of 80m shares? And of that 80m, looking at Google Finance, Inst. own is 76%. This means 60.8m are owned by institutional investors and I can only purchase 19.2m? Did I interpret this information right?

Yep, roughly 80m shares in float (I don't know how much institutional investors own offhand). But there are about 423m shares outstanding in total. The public owns around 80m, and Dell owns the other 343m. There are 223m Dell Class V shares now trading under DVMT (which is the Dell-issued tracking stock that tracks Dell's stake in 223m of the 343m VMware shares that Dell holds).

Google finance is saying there are 126M shares outstanding and this includes institutional investors and company insiders.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

johnhuber

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Re: DVMT - VMW Tracking Stock
« Reply #15 on: September 07, 2016, 01:38:00 PM »

Google finance is saying there are 126M shares outstanding and this includes institutional investors and company insiders.
[/quote]

That's not accurate. A GOOG miscue. There are 423m shares outstanding (81% held by Dell, 19% publicly traded).
I manage separate accounts for clients: www.sabercapitalmgt.com.
I talk about investing at www.basehitinvesting.com.

pau_

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Re: DVMT - VMW Tracking Stock
« Reply #16 on: August 28, 2017, 10:36:57 AM »
Does anyone understand how the DVMT buyback works? Is it maintaining the tracking ratio but accretive to all holders of VMW & DVMT because it ultimately retires VMW stock at the discount? I've read the policy and FAQ documents (and a VIC thesis that purports it's directly accretive to dvmt) and still am not sure how this ought to work.

pau_

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Re: DVMT - VMW Tracking Stock
« Reply #17 on: September 03, 2017, 06:55:18 AM »
I wrote to Dell IR to get clarification on this and they said that the tracking ratio changed minutely in direction of "~1.01" vmw per dvmt as a result of the class v buyback program. Nice to see that this program benefits dvmt holders so far.

ValueMaven

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Re: DVMT - VMW Tracking Stock
« Reply #18 on: November 26, 2017, 06:18:22 AM »
Anyone want to start this thread back up?  I sold all of my DVMT right after EMC was bought out (what an idiot), as there was a small spread into the DELL deal at the time.  I think the tracker went up a few points and I called it a day. 

DVMT is now trading at a 35% discount to VMW...

VMW's business has been on FIRE recently...

Any takers? 

Sincerely,
VM

chesko182

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Re: DVMT - VMW Tracking Stock
« Reply #19 on: January 26, 2018, 05:10:17 AM »
https://www.wsj.com/articles/dell-explores-strategic-alternatives-including-ipo-deal-with-vmware-1516935429

both VMW and DVMT up 7% pre-market, but wouldn't this be a catalyst to collapse tracker discount?
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