Coming to Rackable Systems' Defense (RACK)
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@example.com; he does not own securities in any of the companies he covers.