Rackspace (RAX) – 01-25-2010
Rackspace is a name that anyone who does anything on the web probably already knows. Their numbers are decent, but the thing that caught my screen is the steep slope up on the P/E. It started below 30 at the IPO, and has slowly climbed up over 90. It’s also an IBD stock with a sizeable short %. If the market should drop, these are the types of stocks that eat it the most in the beginning. And on the flip side, I also like these types of stocks to have that big correction and show up on the IBD list a year later with a nice cup with handle or double bottom breakout. No solid triggers for RAX yet, but it’s definitely on my watch list.
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