Silicon Graphics International Corp. (NASDAQ:SGI)
The Company is a provider of density compute servers based on an open architecture approach, targeting scale out datacenter deployments.
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Dropped 42% on earnings warning. Oversold. Company has $7 in cash per share and book value is $11 per share. With cash, you are getting the company for $11.87 per share.
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fool contra
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Don't really know about the future, but I think it's been beaten down too far. Ought to be able to get back to at least 20 or so in the next couple of weeks.
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No brainer.
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With the uptake in media internet services and the clamour from major players as FOX, Google, Yahoo, etc. to come out on top, servers and storage are top priority. Rack is serving this critical need. I wouldn't be surprised to see an acquisition in the future.
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Rackable provides inexpensive server hardware. Many Web 2.0 services have signigicant computational needs. I think that overall server sales will increase over the next year with the big winners being companies like Rackable.
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Nothing can keep this stock down, even The Street.com.
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