On Feb 24, 2015 Jefferies raises the target price from $38 per share to $48 per share.
Now that RAX income and revenue is getting stronger, Jefferies says target is $46.
I just say, Jefferies is behind by a year. RAX will announce new technology and partnership this year. Already one partnership is announced and more to be announced.
"Major Brokerage house, Jefferies maintains its ratings on Rackspace Hosting, Inc. (NYSE:RAX). In the latest research report, Jefferies raises the target price from $38 per share to $48 per share on the counter. According to the latest information available, the shares are now rated Hold by the analysts at the agency.
Company has received coverage from many Wall Street Analysts. In the latest statement by the brokerage house, Credit Suisse maintains its outlook on Rackspace Hosting, Inc. (NYSE:RAX). The current rating of the shares is Outperform, according to the research report released by the firm. The brokerage firm raises the price target from $45 per share to $57"
1- Cash positive
2- Trading at 3 times rev
3- Positive and increasing cash flow
4- Growth stock in a hot sector
5- Innovating new technology
6- To announce partnership with AMZN and others this year
7- Adding revenue every quarter
8- Potential target for acquisition
"They said that they are not seeking a buyer"
That is the most silly statement I read.
Have you ever heard a company announces that it is seeking a buyer publically unless the company is about to go BK?
RAX is a company with young sharp management that is inventing and growing while it is conservative financially. It is not a company to put a tons of debt in the books to get revenue and growth.
1- RAX is cash positive. CTL has $20.5 B debt and only $150m cash.
2- RAX is growing and revenue goes up quarter after quarter
3- RAX reports net (GAAP) instead of NON-GAAP. So, GAAP income is real.
4- RAX market cap is less than 3 time its revenue.
5- Finally, RAX will not stay at current prices and it will go much higher in future.
We know better after CC. Now, people are reacting to every news. There are over 50 companies in this sector and of course each one may have some news that affect others. If each news pushes the stock by $1 then RAX PPS will be negative. Come on guys, this is a high growth sector and there are enough business for all.
However, the big guys will acquire the small one in near future. IBM, MSFT, AMZN, HPQ, ORCL and even GOOG are looking for growth and RAX is a good target.
In other news from the summit, Ansible, a startup backing a hot configuration management tool that makes it easy for businesses to get the underlying cloud infrastructure ready to host software, launched the Simple OpenStack Initiative, backed by Cisco, CSC, HP, and Rackspace. Difficulty of rolling out and managing multiple OpenStack components is another stumbling block for would-be customers so if this effort can make progress here, more power to it.
I think Spectrum follows chart more than an average stock in spite of your manipulation theory.
The most important point is that most day traders, manipulators, investors, etc.. use charts for their daily actions. Knowing this fact, Spectrum fairly follows charts and indicators.
On the other hand, when some people use charts for their trading/investment (may be majority) then the stock is forced to follow charts. If you don't understand charts then just do your old style. Heck don't use internet and relay on newspaper for your trading.
A friend of mine called me and he recommended CASI. I know my friend is connected to some other investors who are very sharp and alert on investments. I told him that you better buy SPPI which owns 20% of CASI and also SPPI CEO is a board member of CASI. After all, CASI shares are not liquid at this time while with SPPI you have more flexeblities.
For 2015, there is only one payment about $6 mil in contrast to what SPPI paid in 2014.
I think, SPPI already decided to slow down on spending and put money on projects that will generate cash in shorter time. SPPI will be cash flow positive in 2015 and it may increase its cash position while focusing on some important projects.
That will bring the subject of current debt and bondholders that are acting very negatively. SPPI may start to shave the debt or find another alternative to deal with it.
Only 2 weeks left from Q1 2015. Fusilev should generate over $30 million and Q1 rev should be between $50 to $55 m. In addition, Q1 should be positive non-gap and positive cash flow based on what we saw in Q4 2014.
In December 2011, I bought PCYC at $12 and then at $15 in Jan 2012. I sold it when it reached my target price around $50 but I kept a small amount of shares.
Recently, ABBV has acquired PCYC for $21B at $261 per share. PCYC has only one cancer drug that has been approved recently. May be I can try my chance again with SPPI.
Imagine SPPI with zero rev and without any drug excerpt SPI-2012 in phase III. With those conditions, the company worth over $1B and over $15 per share. You do the math when other conditions are added.
The negative analysts cannot see more than a month in future and how can they dare to poison the market with something they are not familiar with.
If one or two analysts do not understand the potential of the drug and all the drugs in PCYC pipeline, it is their problem. Some idiots were saying the same thing when GILD bought its HEP C drug.
Analysts are focusing on one drug but ignoring the PCYC pipeline, more indication of the drug and the most important, the intellectual property that ABBV will get. They will create much more blockbusters.