Friday, September 22, 2006

 

Fly Sell: RACK

I sold short 2,000 RACK @ $28.01.

UPDATE: I sold short 5,000 RACK @ $27.72.

Comments:
why do you hate rack so much? Based on future earnings and growth it seems fairly priced if not a bit on the cheaper side (especially when we get under $25).
 
Jan

I don't hate it. I want to profit from it.
 
RACK has survived 2 days of profit taking. Who's holding it up? I would have thought this would be under $27 by now
 
It's holding support.

Someone wants this stock up.

However, I am hearing margin erosion is hurting them.

Anyway- market breaking down.
 
if there's any economic slowdown at all, these guys will be the first against the wall. In a tight capex environment, everyone from IBM and Dell to a zillion little integrators we never heard of will all eat RACK's lunch, literally. A million shares of dilution doesn't help much either. might be a good short beyond a trade.
 
AMZN is one of RACK's biggest clients.

Ouch.
 
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