Opinion on  Rackable Systems Inc (RACK)     Sector: Technology  >  Industry: Computer Hardware
RACK: Buy if you have a strong stomach

This is a classic momentum stock. Formerly a stockmarket darling, repeatedly beating its guidance it has now come back to earth. They have a strong core business, but it's dependent on a few key customers. Word is, the company may be a take over target. The company is at the center of the action with Internet data centers in companies like GOOG, MSN, etc. Management team is young and yet to prove itself. This could be a great buy or could let you down. Roll the dice...

On Dec. 8, I recommened Rackable Systems (NASDAQ: RACK) as a speculative buy. The company just announced that they have parted way with their VP, Sales. I do not see this as good news. They don't have a replacement. Year-end is 16 days away.

I don't think this stock is a buy. Hold at best.