On CNBC's "Fast Money," Karen Finerman named a couple of reasons why there seems to be a disconnect in valuation between Dell Technologies Inc DELL and VMware, Inc. VMW.
She said that Dell Technologies has a lot of debt and investors should not look just at its market cap. It's necessary to add the debt to the market cap, which is called the enterprise value. Dell also owns the stake of VMware through a holding company and people don't value that fully.
Additionally, it's planning to spin it off so it's not getting the cash in, explained Finerman. She likes Dell for the long-term and she thinks Michael Dell is a genius.
Dan Nathan believes Dell's shareholders are going to benefit from the VMware spin-off. He added that VMware hasn't really participated in the rally and it looks like it's poised for a move higher. Nathan thinks that investors won't get hurt owning VMware.
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