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Xyratex (XRTX +10%) rallies after activist firm Baker Street Capital discloses its stake is now...

Xyratex (XRTX +10%) rallies after activist firm Baker Street Capital discloses its stake is now at 23%, and issues an open letter in which it: 1) Nominates 3 board members. 2) Calls on Xyratex to halt its big investments in HPC and cloud hardware solutions, as well as curtail SG&A spending. 3) Estimates the company is trading at only 2.2x the EBITDA produced by its core storage system and hard drive equipment ops (exc. cash). Xyratex rose on Friday in spite of providing disappointing guidance to go with its FQ4 beat.
Comments (3)
  • twhite113
    , contributor
    Comments (402) | Send Message
     
    Hey editors, XRTX closed higher (take a look) on Friday because the world knows its ridiculously cheap....their outlook for '13 was in-line.
    14 Jan 2013, 01:59 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (857) | Send Message
     
    You're correct. Shares opened lower, but ended up rallying. Revenue guidance was below consensus. Edited the post.
    14 Jan 2013, 02:11 PM Reply Like
  • twhite113
    , contributor
    Comments (402) | Send Message
     
    Thanks for the partial correction....but, as I said full year '13 rev guidance was in-line:

     

    "In consideration of these factors, we expect revenues in 2013 to be in the range of $825 million to $975 million, and at the lower end of the range, we would expect to incur losses."

     

    The Yahoo Finance estimate was (and is) $876M...the 1Q13 rev's was taken down, but not full year as i originally pointed out.
    17 Jan 2013, 08:09 AM Reply Like
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