SGI Corp. (SGI)

A maker of disk "farms" recently acquired well recognized brand for a song. CEO seems to be "plugged into" green computing, and legacy hardware is creating good super-computing efficiency buzz. Currently selling with a negative enterprise value. I think it should double from here. I have no idea if the company is being well run otherwise, it could be a diamond in the rough.

Negative enterprise value stock with no debt. Cash per share is 5.82 vs share price of 4.54.

I am long and in pain. A couple of points:

1. It trades below book value.

2. Positioned well in cloud computing. Larry Ellison mentioned cloud computing in Oracle's recent earnings call. It could get taken over by any number of large players.

3. It is currently very oversold.

Just remember, I have been long and very wrong. However, I thought I would share my two cents.

Thanks.

They're trading at less than cash right now -- after completion of SGI purchase and estimated FY09 burn you're still getting the entire enterprise for about 50 cents a share. Revenues beat in Q1 and if they can integrate SGI and regain some of their luster with their margins you'll see a nice bounce here.

Energy efficient data centers. Bought Silicon Graphics for a song. May be poised for some nice upside, given time. Buying.

Lowest cost / BG storage and power consumption and greater reliability in server systems for data centers. Rackable has significant competitive advantage over Big Blue, HP, Sun, and eventually Cisco in terms of server systems design necessary for the cloud computing. Compatible with Linux, VMWare, etc. Last week acquired SGI's assets including IP of Cray Research subsidiary, which potentially will lead to accelerated entry into high end market server systems to support MPP distributed databases.

Negative enterprise value

cloud computing

Rack is a sure fired bet if you think cloud computing is going to dominate in the future. I do.

Technically, soaring since late March, plenty of upside momentum with improving performance (e.g. Facebook ties).

rack em up

Facebook seems insatiable and they are providing the majority of the infrastructure for the company that is a leading edge case study in how to scale to deliver a billon plus pages a month. Wish I would have found this at $8

Great quarter results, it seems the worse is over and is all the way up now

Rackable Systems is absolutely screaming value based on paper. RACK has $6.06 per share in cash with no debt and is trading at just $8.07 per share. Doing the math you're looking at paying $2 after cash for a company expecting to turn a profit of 15-26 cents in 2008 which is ludicrously inexpensive. RACK is trading at an all-time technical low and is looking pretty oversold in this environment. Fundamentally there is a ton of cash buoying the stock at these levels. After growing revenues from 110M to 360M in two years I think investors have unfairly punished the company for leveling off for 18 months. If it makes you feel any better, revenues will grow by 15% over the long-term. Two things will happen here, either a large buyback, or a buyout. Either way I want to own RACK.

Nero

Sagetrade

a recommendation and good earnings

beat up. any good news and off to 20

MIght very well hit $20 in a near future.

See FWLT commentary.

Company has already had the stuffing beaten out of it. Very little downside and tremendous upside with litigation being settled and products gaining momentum