25-Aug-15 85,500 RAX Automatic Purchase at $29.24 per share.
(Cost of $2,500,020)
20-May-15 5,568 RAX Acquisition (Non Open Market) at $0 per share.
18-Nov-14 58,480 RAX Purchase at $42.75 per share.
(Cost of $2,500,020)
And PE is still above 20, unsustainable in this recession
The Stock Market Ponzi Scheme at it's best. RAX perfect example.
So we have the Intel slow down news in their data center business which has an incremental news impact on companies like RAX but metrics would seem to continue to indicate that the slow down was priced in since the beginning of early December. The declines also seem to be exacerbated by lower trading volume. Any thoughts?
When you look at the recent decline in RAX, how much is likely related to ETF selling against a low liquidity environment and how much is likely fundamental selling? While I don't have the answer it would give pause to evaluate that there are several ETFs among the company's top holders, so marginal selling could be placing undue pressure on the equity price. At the same time, EV/EBITDA LTM is about 5.5x, which should be attracting buyers in a reasonable market. The NTM multiple is even lower with some natural risk to it.
If more people made 25 million in the last 2 years you would.
The new 2014 CEO. Well he made more than $12 million in 2014 and more in 2015 So thats 10% of his compensation for those 2 years.
Well he made more than $12 million in 2014 and more in 2015 So thats 10% of his compensation for those 2 years.
What: Shares of cloud-computing company Rackspace Hosting (NYSE:RAX) slumped on Monday, driven in part by a note put out by Piper Jaffray that suggested that both Amazon's (NASDAQ:AMZN) AWS and Microsoft's (NASDAQ:MSFT) Azure have gained mindshare among CIOs.
So what: According to Piper Jaffray's recent survey of 135 CIOs, AWS gained 130 basis points of mindshare from competitors since the previous survey last year. The firm points to AWS' functionality, scalability, fast pace on innovation, and developer loyalty as the key drivers of the mindshare gains. According to the survey, 87% of CIOs intended to spend more on AWS in 2016 compared to 2015.
Microsoft's Azure cloud platform was also a big winner, gaining 810 basis points of mindshare. Piper Jaffray sees Azure as the only meaningful threat to AWS, although the firm points to heavy marketing as one of the drivers of Azure's growth. These gains in mindshare for both AWS and Azure came at the expense of smaller players like Rackspace.
Now what: Shares of Rackspace have declined by more than 50% over the past year, in part due to fears that the company will be unable compete with larger players like Amazon and Microsoft in the long run. Rackspace has focused on offering superior customer serviceOO, as opposed to trying to compete solely on price, and while the strategy makes sense, investors don't seem so sure.
Whether CIO mindshare has any predictive power at all when it comes to the cloud-computing market remains to be seen. Rackspace is still growing at a healthy pace, posting 10.7% year-over-year revenue growth during its latest quarter. That's peanuts compared to the growth of Amazon's AWS, but Rackspace certainly isn't falling apart. Only time will tell whether the smaller company can compete with Amazon and Microsoft in the long run.
A stock for greedy investors
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small
Sentiment: Strong Buy
I like to see more insiders from Rackspace to step up and buy more shares to back up supporting their director confidence.
I did some research. It was my mistake. It was a rumor back in last May, 2015 that IBM was interested in buying Rackspace at $50 a share. However, Rackspace did deny the rumor. Since then the director loaded up large amount of shares purchase last August at high $29 a share. So far, the director has lost over $400K dollars. However, it is encouraging to see insider purchased such large amount of shares at near $30 dollars a share. He does not even sell after the stock zoomed over $40 dollars a share.
Sentiment: Strong Buy
I don't believe they ever did receive an offer at $50. There was lots of media speculation but nothing at all confirmed in any way. If there was an actual offer, we would have seen it. I could of course be recalling incorrectly so feel free to research who an offer actually came from and please share if you find it.