Rounded bottom formation, heading back towards IPO price

FD: position in SDXC

From Barron's 8-19-07:

Outperform - Price 15.65 on Aug. 14
by Raymond James
Compelling 2Q07 results: SDXC reported [earnings before interest, taxes, depreciation and amortization] of $9.8 million versus our $9.4 million estimate and consensus $9.2 million...[due to] better-than-expected cabinet and interconnect sales as well as higher-than-expected average revenue per cabinet...We believe that revenues in these markets are producing solid mid-teens revenue growth. We arrive at our 22 price target using an enterprise value/Ebitda analysis, where we apply a 15 times multiple to our 2008 Ebitda estimate.

Now trading 15% below its IPO price with no fundamental change in the company.

jc recommend

Mad Money

Switch & Data

Network neutral co-location, seems to be a growing industry

spec

cramer recommendation

Low peer valuation in comparision to its main compettitor equinix

down 3 pts from IPO with no good reason why........then again maybe we back up the truck