Red Hat, Inc., the world's leading provider of open source solutions, recently announced that its Board of Directors has amended the Company's previously announced program for the repurchase of its common stock and convertible debentures to increase by an additional $125.0 million the amount of debentures that may be purchased under the program.

The stock trades for 18x cash flow.

Hold -- Price 17.95 on Sept. 23
by Battle Creek Research

RHT trades at 36 times our fully-taxed calendar 2008 EPS estimate of 50 cents and 28 times our "09E of 65 cents. We believe RHT will ... gain traction in enterprise-data centers. However, we do not see a catalyst to increase share value at this time. Market cap: $3.4 billion.

From a recent Mad Money show: "I think their CEO tells a good tale. I like Red Hat."

Cramer Interviews Red Hat CEO: In this July 30 'Mad Money' clip Jim Cramer and Jim Whitehurst discuss Red Hat's stock and business.

Click here to watch the video.

From a recent Mad Money show:

"Oh boy. I have never called this one well. It's on my restricted list. I have never been right on this one. I'm not going to give you an opinion."

Red Hat (RHT) was downgraded from Buy to Neutral, Merrill Lynch said. Valuation call, as discretionary enterprise spending could slow down in the coming quarters.

internet recomend.

Credit Suisse said it is downgrading Red Hat (RHT) to Neutral from Outperform. Cites expected catalysts won't materialize in the short-term. Lowered target price to $22 from $27.

THINK RHT HAS A BRIGHT FUTURE AND LIKE CHINA INVESTMENT

Another local company I've followed for years. Last year I bought them in the fall after a correction at $15 and sold at $23 in Jan. I'm starting to build a position now and will try to do the same again. It follows Cramer's "Don't own tech in the Spring" philosophy.

computer

growth during tech rally