Author Topic: DVMT - VMW Tracking Stock  (Read 22118 times)

Foreign Tuffett

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Re: DVMT - VMW Tracking Stock
« Reply #20 on: January 26, 2018, 06:59:23 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?

I have no idea what's Dell will do, but I bet they're really hating the new tax bill's limits on interest deductibility given their huge debt load.

I think the new tax bill increased the odds DVMT holders get screwed over at some point. Recall that Michael Dell and Silver Lake took Dell private in 2013 at a bargain price which wasn't particularly good for minority outside shareholders.




Foreign Tuffett

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Re: DVMT - VMW Tracking Stock
« Reply #22 on: January 29, 2018, 08:10:27 PM »
interesting -
https://www.cnbc.com/2018/01/29/vmware-could-buy-dell-in-what-could-be-techs-biggest-deal-ever--a-reverse-merger-that-would-bring-dell-back-to-public-markets.html

Michael Dell is ruining Q1 for many hedge funds.

I agree with the market reaction here: a reverse merger in which VMware "buys" its Dell Technology parent would be a bad outcome for both VMW and DVMT. It would also be another sign Michael Dell isn't particularly friendly to outside shareholders.

I would think very carefully before playing the spread here. Michael Dell and Silver Lake's game of capital markets "3D chess" could leave DVMT as an tracking stock that is untethered from the VMW security it was originally meant to track. 

Value^2

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Re: DVMT - VMW Tracking Stock
« Reply #23 on: January 30, 2018, 12:33:17 AM »

Michael Dell is ruining Q1 for many hedge funds.

I agree with the market reaction here: a reverse merger in which VMware "buys" its Dell Technology parent would be a bad outcome for both VMW and DVMT. It would also be another sign Michael Dell isn't particularly friendly to outside shareholders.
That shouldn't be too surprising after 2013 MBO.
« Last Edit: January 30, 2018, 12:38:43 AM by Value^2 »

given2invest

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Re: DVMT - VMW Tracking Stock
« Reply #24 on: January 31, 2018, 08:42:30 AM »
DELL can't buy VMW or force a reverse merger w/o the "majority of the minority" VMW shareholders agreeing - so they can't screw VMW shareholders.

It's debatable if they can or will screw DMVT - but that's something to keep in mind with all this noise.

I like DMVT here a lot.  ($71)

sjh

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Re: DVMT - VMW Tracking Stock
« Reply #25 on: January 31, 2018, 11:57:42 AM »
"Show me the incentive and I will show you the outcome."

https://seekingalpha.com/article/4141652-look-dells-incentives

Foreign Tuffett

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Re: DVMT - VMW Tracking Stock
« Reply #26 on: January 31, 2018, 08:14:18 PM »
DELL can't buy VMW or force a reverse merger w/o the "majority of the minority" VMW shareholders agreeing - so they can't screw VMW shareholders.

It's debatable if they can or will screw DMVT - but that's something to keep in mind with all this noise.

I like DMVT here a lot.  ($71)

Have you read the "Risk Factors" section of VMW's most recent 10-K? If not, I would strongly recommend that you do so.

given2invest

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Re: DVMT - VMW Tracking Stock
« Reply #27 on: February 03, 2018, 01:13:23 PM »
DELL can't buy VMW or force a reverse merger w/o the "majority of the minority" VMW shareholders agreeing - so they can't screw VMW shareholders.

It's debatable if they can or will screw DMVT - but that's something to keep in mind with all this noise.

I like DMVT here a lot.  ($71)

Have you read the "Risk Factors" section of VMW's most recent 10-K? If not, I would strongly recommend that you do so.

Yes, there is a $15B market cap of DVMT that's really worth 0 - if only all those folks had read the risk section of the 10-k.  Oh and many of those shareholders are the world's savviest investors.

Foreign Tuffett

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Re: DVMT - VMW Tracking Stock
« Reply #28 on: February 04, 2018, 02:13:02 PM »
DELL can't buy VMW or force a reverse merger w/o the "majority of the minority" VMW shareholders agreeing - so they can't screw VMW shareholders.

It's debatable if they can or will screw DMVT - but that's something to keep in mind with all this noise.

I like DMVT here a lot.  ($71)

Have you read the "Risk Factors" section of VMW's most recent 10-K? If not, I would strongly recommend that you do so.

Yes, there is a $15B market cap of DVMT that's really worth 0 - if only all those folks had read the risk section of the 10-k.  Oh and many of those shareholders are the world's savviest investors.

Who said it was worth $0? Those are your words, not mine.

I don't know what's going to happen with DVMT. Probably no one does. All I was trying to say is that there are multiple ways for Michael Dell and Silver Lake to pull the rug out from under DVMT investors. Caveat emptor.

given2invest

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Re: DVMT - VMW Tracking Stock
« Reply #29 on: February 05, 2018, 07:03:16 AM »
DELL can't buy VMW or force a reverse merger w/o the "majority of the minority" VMW shareholders agreeing - so they can't screw VMW shareholders.

It's debatable if they can or will screw DMVT - but that's something to keep in mind with all this noise.

I like DMVT here a lot.  ($71)

Have you read the "Risk Factors" section of VMW's most recent 10-K? If not, I would strongly recommend that you do so.

Yes, there is a $15B market cap of DVMT that's really worth 0 - if only all those folks had read the risk section of the 10-k.  Oh and many of those shareholders are the world's savviest investors.

Who said it was worth $0? Those are your words, not mine.

I don't know what's going to happen with DVMT. Probably no one does. All I was trying to say is that there are multiple ways for Michael Dell and Silver Lake to pull the rug out from under DVMT investors. Caveat emptor.

Yes - I'm aware - and thus the 42% discount.  If they want to screw you, they can probably screw you.  I used the "0" as a price target only to show, with hyperbole, that there is a big middle ground where you can get "screwed" and still have DVMT worth more than it's trading for.  42% discount. 

btw if you read the risk section in most 10k's it would scare the crap out of you ;)