$32.00 is an important pivot point for this stock for some reason. Seems to find a lot of support and resistance there on the daily. Bearish wedge pattern since August fills the gaps. Trading below the 50 Day MA today and the 200 is several dollars above it. Since the low in August does not have the appearance of a good bottom to build off of, I would put odds in favor of this low eventually being retested.
So far KGB U are certainly correct Sir! The chart is winning over the "hunch". This is so unfortunate for the stonedinvestor. Your offer to donate $25K is extremely noble. I, however, cannot accept it at this time -- As I expect a bit of a rally later today. I would think even RACK will cut half it's losses. Then if it opens up tomorrow, it will look like a reversal day with perhaps more upside ahead & with a triple bottom in @$ 30.00. That's the glass half-full look anyway. Rum is in the glass.
Ok a freakin' salesmen left the company. Did the chart indicate a salesmen was going to leave? I guess so- but who the hell cares? Is he going to the competition? Does he have a no compete clause?. If I told you the head of sales at Friendlys Ice cream left are you going to sell the stock? This RACK is becoming a real pain in the stonedinvestors posterior. If management has any sense they will raise numbers NOW.
$32.65 high today.... $31 close! I hate this mother f*ing stock. Why did I do this to myself? It's getting bad folks I've started dreaming about scenarios in which I can come out on top. The latest one: I keep envisioning "IBM buys Rackable Systems " come out of Dillen Raddican's mouth on CNBC. It doesn't matter what he's saying, that's what I hear. I've also convinced myself management is going to raise numbers. I week ago I couldn't give a rats ass about this stock now I'm it's only defender. RACK wants to go UP you can so see it, you can feel it, there's just so many damn people leaning against it, it's going to take an exterior event to get a short squeeze going. I just can't shake it i think it's going to happen. Speaking of CNBC. Maria has really hit the wall. It's sad. There's some British chick now that does special reports and when she throws it back to Maria it's like Joe Dimagio standing naked next to Yogi Berra. Also- I can't help it- theres something about that Becky Quick in the morning- I like her- maybe too much. Well it's Christmas party time here the inn laws are on the WAY and the stonedinvestor is about to get very very cheery- just don't ask me about RACK! (or SIRF!) ~ Happy Holidays.
Stoned, You should frequent the yahoo RACK message board, as you'll find plenty of friends in your predicament. Lots of "true believers" with too much $ on hand buying 10-20k share positions, with little disregard for either technical or fundamental developments. I warned them the same as I warned you about the breakdown on the descending triangle. From a fundamental standpoint, there was a week in a row of no news, 3-5M shares traded (very heavy), and price heavy in the red. Then the Sales VP suddenly gets canned. Now, why would the Sales VP be fired 2 weeks from the end of the all-important 4th quarter? For a company dependent on 6-7 large customers, the loss of a single customer means the quarter is blown. Is it possible the two are correlated? Is it also possible the smart money was tipped off early about a dropped contract and dumped heavily as they did during that no-news period? In my opinion: yes and yes. A lot of money was pulled out in that selloff (and shorted) and until we hear clarification from the CEO that the quarter is on-track, I would not risk a single dime with this company. But don't let my opinion ruin impede on weekend fun, enjoy the festivities! I'll put that 25k donation into escrow should you change your mind.
You should frequent the yahoo RACK message board, as you'll find plenty of friends in your predicament.- KGB Wow! I've never been to the yahoo message boards before! I had heard it was filled with juvenile idiots flaming each other and lying about their trades... and it's even worse than that! Now, why would the Sales VP be fired 2 weeks from the end of the all-important 4th quarter? For a company dependent on 6-7 large customers, the loss of a single customer means the quarter is blown. Is it possible the two are correlated? Is it also possible the smart money was tipped off early about a dropped contract and dumped heavily as they did during that no-news period? In my opinion: yes and yes.- KGB And on those boards I found a lot of conspiracy thinking not unlike the above by KGB. Seeking Alpha pretty much parroted the same ideas... so I'm left to think which is the original thinking here? Could it be me? Truthfully, I am getting very nervous by the thought that this salesmen forfeited some options and sales bonuses when he left- why would he do that unless he was under performing? But what if he was caught with his pants down at the office party? Someone from the Yahoo message board e-mailed me a picture of two butt cheeks made on a copping machine and swears it is this same salesmen just before he got shown the door! This investment is getting crazier by the moment! How will it turn out for the stonedinvestor. Stay Tuned!
Stoned, I really hope you got out of this one beforehand. Those poor RACK longs who held since the Q2 50% collapse, only for another collapse 2 quarters later and wiping out the 7 month recovery. Oh well, I tried to warn them.. would've been nice to still have that 7k short open..
oh KGB you dog. I was sitting here happy as could be watching Power Rangers and now because of you I'm frantically e-mailing people who don't want to hear from me at their home. I purged RACK from most of the accounts but think I still have it in one... Damn! If only you weren't so damn happy about it. Good Call!
When did I say I was happy about it? Hitting myself for closing that short far too early. Hope your investors are still talking to you today. It'll blow over. At least the AH price you got them out at yesterday was a dollar better than the action today.