Coming to Rackable Systems’ Defense (RACK)

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By Douglas A. McIntyre Published

Rackable Systems (RACK-NASDAQ) is a stock that probably doesn’t need reminding about a weak stock, and calling it weak may be far too kind. 

Just yesterday the company settled some patent litigation with Super Micro Computer.  This morning the shares are trading higher after First Albany came out on valuations and raised the shares all the way up to a Buy rating from an Underperform rating.  This upgrade looks like it is the only active buy rating from brokerage firms that follow the stock.  It also appears that First Albany was not in the underwriting group back in 2005.

This former hi-flyer flameout has fallen over 80% from over $50.00 in the last 18 months to as low as $11.25 recently after a steady series of warnings.  Shares traded up 2.5% yesterday and are trading up more than 3% at $12.45 pre-market. 

Jon C. Ogg
May 9, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in any of the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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