RAX Rackspace Hosting Inc: Dell buyout rumor

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	David Sachdev
	Washington, DC User since Dec 2009	37
Covers MCP SINA GLUU SODA BAC AAPL TIBX and 3 other stocks - Go to Blog
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Dell buyout rumor

Yeah...I'm playing 100 shares on the buyout rumor....which they are talking about for tomorrow. Got in at 27.10...support is at 26.50 on the downside, and if I get 25% upside in a day or two, I'l be happy. If it doesn't happen, I'll likely sell the shares since I'm not a bit Rackspace fan. I've been a user before....but I understand why big companies do use them.

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What People Are Saying...

Josh Warner-Burke said at 11/2/10 3:35 PM Price action was $25.99 0.63 (+2.5%)

hmm could be an interesting options play, with limited downside but big potential upside

David Sachdev said at 12/10/10 10:48 AM Price action was $31.93 1.88 (+6.3%)

Still holding RAX because even though the initial buyout didn't happen, the stock has been working for me. Would love to see a new buyout - with a pop from these levels.

David Sachdev said at 12/21/10 12:42 PM Price action was $31.42 0.44 (+1.4%)

Closing my position as I added more to my MCP. It has been working well, so I have committed some more money there.

David Sachdev said at 1/4/11 9:46 AM Price action was $31.66 0.23 (+0.7%)

renewed takover speculation. I'd still be in this stock, and have this coverage open if I didn't have my money committed elsewhere.

David Sachdev said at 2/11/11 10:30 AM Price action was $39.89 2.87 (+7.8%)

This turned into an accidental good hold, and I think it is going to rally more!

David Sachdev said at 3/30/11 11:57 AM and replied Price action was $41.90 2.19 (+5.5%)

Rackspace + Dell + Cloud = $$$
$45.00 (+6.0%) by 11/30/11
I think that this could be very good for RackSpace's share price:

REDWOOD CITY, Calif. --(BUSINESS WIRE)-- Dell Inc. (Nasdaq:DELL), Equinix, Inc. (NASDAQ:EQIX) and Rackspace Hosting, Inc. (NYSE:RAX) today announced that they have collaborated to develop an OpenStack(TM) cloud demonstration and test environment. The demo environment will be available in three data centers: the Equinix International Business Exchange(TM) (IBX(R)) in Silicon Valley , Calif., and Ashburn, Va. , and the Rackspace data center in Chicago, Ill. The companies also plan to collaborate on additional demo environments in Equinix data centers in Europe and Asia in the second quarter of 2011. The demonstration environment allows organizations to easily and rapidly assess applications on the open-source cloud platform, simplifying the evaluation process and speeding the deployment of OpenStack proof of concepts (POCs). It is the first demonstration of an open standard platform where geographically dispersed OpenStack clouds can offer customers the ability to move applications and workloads between them.