Back On The RACK?

Discussion in 'Stocks' started by stonedinvestor, Sep 4, 2007.

  1. Perhaps no stock in recent memory has both enthralled with possibilities and disappointed investors as Rackable Systems. In fact it's shady trading patterns have unleashed more vicarial responses on this site than any other stock I have posted about. To be fair the naysayers were dead on, the stock has been awful.

    Massive break followed by massive break and now a nice multi month base.... or is it?

    Close as of week ending
    Opinion LONG Date Opinion Formed 07/09/07 Price Opinion Formed 12.55

    Stock is a Buy.
    Moving Average Convergence/Divergence (MACD) indicates a Bullish Trend.
    Chart pattern indicates a Weak Upward Trend.
    Relative Strength is Bullish.
    Up/Down volume pattern indicates that the stock is under Accumulation.
    The 50 day Moving Average is rising which is Bullish.
    The 200 day Moving Average is falling which is Bearish.
    Look for Support at 12.24
    Price is above Resistance of 13.06 which is Bullish.
    Week's Activity (Close as of week ending 8/31/2007)
    Week Close 13.72 Week Change 0.88
    Week Low 12.04
    Price Analysis
    Yr. High 37.80
    Yr. Low 11.25
    MO Chg.(%) 14.0
    Resistance 13.06
    Support 12.24
    SELL STOP 11.27

    Moving Average Analysis
    Type Price % Slope
    10 Day 12.65 108.4 UP
    21 Day 12.63 108.6 UP
    50 Day 12.38 110.9 UP
    200 Day 18.10 75.8 DOWN

    Volume Analysis

    MO Chg.(%) 15.0

    Up/Down Volume (U/D)
    U/D Ratio 1.5
    U/D Direction UP

    On Balance Volume BL
    Positive OBV BL
    Negative OBV BR

    Money Flow(MF) 65
    MF Direction UP

    MACD LT BL Wilder's RSI 72 POWER RATING 83

    The only firm out with a mildly upbeat note*
    >- RBC Capital is out with some surprising comments on Rackable Systems (NASDAQ:RACK) saying their checks suggest the flow of orders at Rackable is improving as Amazon laps tough year-over-year comparables and other key customer relationships remain stable. Consequently, firm's revenue estimate for the quarter may prove conservative.

    Based on valuation and historical EV-to-revenue multiple analysis, they estimate potential EV-to-CY 08 revenue multiples of 1.0x on upside execution and customer risk mitigation and 0.2x on downside execution. Currently, Rackable is trading at ~0.4x RBC's CY08 revenue estimate ($420 million), suggesting negative execution sentiment relative to estimates. Accordingly, they expect some near-term recovery in the shares, though the sustainability of any positive move is difficult to gauge given the customer concentration.

    On a 12-month basis, the firm maintains their $13 price target as they evaluate the potential for more consistent execution beyond the current quarter. Firm maintains Sector Perform rating and Speculative risk assessment for the same reason.

    >> so we have a PT right where the stock is...
    but we also have an analyst meeting this Sept 6th, if these channel checks prove accurate a short-induced spike could occur.

    How many times can one be burned by a stock? I guess that's the question. For me it's been only once, a painful one at that but it's undeniable there is a weird attraction to this name.....

    Bring on the comments! ~ stoney
  2. Rack is crap

    many people have lost lots of money trying to call the bottom on this
  3. Nice move this morning $13.75 to over $14.00

    Rackable Systems, Inc., has revealed that one of the company's servers, supporting key Oracle Fusion middleware technologies, set a record breaking performance for an x86 system supporting the SPECjAppServer2004 industry standard benchmark.

    For the test, Rackable Systems C2002 high efficiency servers powered by dual Quad-Core Intel Xeon 2.66 GHz processors on Linux were used to support Oracle Application Server 10g Release 3 coupled with Oracle Database 10g. The results: the system achieved a superior performance of 1,111.96 SPECJAppServer2004 JOPS@Standard (jAppServer Operations per Second). WOW I don't know what the F that me4ans but it sounds fast stock_Trade3r!

    There's also this weird " Eco " side of the business now- are they trying to be a " green "
    Server Co?

    >Rackable Systems, Inc. , a leading provider of servers and storage for large-scale data centers, recently announced the availability of the next generation of the company’s award-winning, high performance RapidScale clustered storage appliances and its new OmniStor SE3016 system. The new generation of Rackable Systems Eco-Logical storage products features high efficiency, low power consumption and smart design to optimize price performance per watt in even the most complex computing environments.

    Leveraging Rackable Systems’ patented DC Power technology, RapidScale achieves proven, significant power savings in any AC- or DC-based data center while providing unparalleled performance of up to tens of Gigabytes per second of I/O throughput. Ideal for any industry requiring large-scale storage solutions, including Internet, oil and gas, and government labs. The RapidScale SA2150 appliance is designed and built in Rackable Systems’ hallmark half-depth form factor to enable back-to-back mounting for highest density and superior cooling, achieving further power reductions in HVAC expenses while maximizing valuable data center space.

    Mark Barrenechea, President and CEO of Rackable Systems remarked, ''These remarkable results clearly demonstrate our ability to support highly scalable and data-intensive applications for a broad range of customers. Rackable Systems continues to focus on highly efficient, eco-friendly servers and storage, meeting demanding customer performance and environmental requirements to drive key enterprise applications and processes.''

    A little more imput folks before I take a deadly plunge! ~ SI
  4. +13% on 10x normal volume... Rumors of a takeover once again, this time with IBM (recall the rumor last spring with Dell only to fizzle out)
  5. Is Rack Back?

    Rackable Sees ‘07 Revs $340-$360 Million; Stock Jumps
    Posted by Eric Savitz

    Rackable Systems (RACK) shares jumped today after CEO Mark Barrenechea gave a presentation at the Lehman technology conference in San Francisco today. During his talk, Barrenchea repeated previous guidance that the company sees revenue for 2007 of $340 million to $360 million, with gross margins of 16%-18%. The Street consensus is $348.6 million.

    I just listened to the call, and Barrenchea told an upbeat story, but I didn’t hear anything remarkably new. On the other hand, the stock is often the subject of takeover rumors, and things were pretty quiet on the news front this afternoon, so maybe there is something else happening here. Anyway, Rackable today rose $1.43, or 13.3%, to $12.15.

    Eric call KGB for the real story! ~ stoney