Rackspace Hosting (RAX)

Cloud computing is the future.

Managment in this company is very strong!

The King of Cloud Computing.

Popularity of this niche industry will take off as companies realize the value of managed hosting and the technical advantages of what Rackspace offers.

This account tracks the fast-growing shakers and movers and some of the riskier stocks on my watch list.

Cloud computing is the future.

cloud competing is a growing industry - Rax is doing well, is well managed and funded . I expect $50 in 3 years.

Well off its Great Recession lows but still plenty of room to grow.

Cloud computing seems to be the internet wave of the future and this is a company that is paying particular attention to service and employee involvement.

The leader in hosting services to businesses and ranked as one of the 43 of 100 Best companies to work for according to Fortune, you can't go wrong. Rackspace enables companies' IT departments to be more efficient. RAX will grow by leaps and bounds in the next few years.

Focus on customer service and flexible solutions

Unlike many other internet companies, Rackspace Hosting is somewhat capital intensive. It needs to reuse its capital to build more and more computer capacity. I like the company's market niche and growth opportunities, but I think it is significantly overvalued at 5.5 times book value and 56 times estimated 2009 earnings. Insiders are heavy sellers around $15.

Businesses will need no-hassle could computing.

Speculative pick on the future of computing.

As businesses become more decentralized and smaller enterprises emerge, they will want to outsource their IT and software needs to a much greater extent. RAX is positioned to offer those services very efficiently and with the needed consistent excellent service and dependibility.
RAX can offer the latest cutting edge support in an environment that is rapidly changing.

Reliability backed with cash refunds is a profound statement of focus and goals. Customers who are sensitive to service levels will select a vendor who offers the package of service, reliability and refund that meets their needs.
The service sensitive customer is not buying the same offering that a commodity seller (Amazon, AT&T is selling).
The $3.99 gallon of milk bought at 3 a.m. at a convenience store to feed a hungry baby is not the same product sold during the day at your local grocery store for $2.49.
The product is made up of many elements, and a declared, written policy to focus on service and reliability is not part of the product makeup being offered by commodity priced vendors.
And the customer retention stats say the customers are noticing and selecting this differentiated product.

Of course delivery of what is promised may falter. And other vendors can replicate this product component. So the product makup may not be sustainable over the long term.

But right now, the market seems to perceive and purchase the differentiated product.

Incredible, incredible customer focus. I love what these guys stand for how and how much value they bring to their customers. With such a strong corporate culture, and such dedication, they can only continue to command the premium prices they charge.

Gaining momentum for a newly traded company. It is over the traditional spike and dive of new offerings. Cloud computing is gaining favor. I believe that this company has the wherewithall to compete successfully in this space despite larger more well funded companies. Smaller companies are much more nimble in a space that's relatively new, that's their advantage. Wouldn't be surprised at a buyout!

Company management and philosophy added to their yearly growth make this one hard to beat. Sharp minds at the helm and a firm grasp on the market will make this one a big winner.