At the latest RACK investor presentation, one of the analysts asked why EMC wasn't a competetive threat in RACK's business, and the CEO commented they wouldn't be interested in it because the gross margins were too low - it would drag down EMC's overall margins. If that is true, it doesn't make sense that EMC would buy them?
lets hope not, rack is a much faster growing co. you will make more money owning rack then emc or sun or ibm. im buying rack here, good price could get a fast rebound. after all the company has 324 million in assets and at $18.75 a share thats about a 526 million market cap. i just seen the new p.e is at 17 forward. thats good, i believe the stock is over sold and a new buy has been put on the stock with a $28.00 target. should bonce tomorrow.
Now is the time EMC should place a bid for RACK. They could bid 30 bucks and the shareholders would probably appove that. 3 days ago they would not have approved it. Nothing has changed for RACK...Growth with a bump in the road....I bet EMC is thinking about this one.....Any shorts that did not cover today or yesterday will be call the PIG of all PIGs if EMC bids for RACK!