David Mamos

Buy, Sell or Hold: Is Rackspace’s Cloud Being Vaporized? – Money Morning

Rackspace Hosting (NYSE: RAX) is currently the number two provider of cloud computing. The company has been under the microscope lately as its stock has dropped nearly 45% year-to-date.

But the microscope is not just fixated on Rackspace, it’s also focused on the entire cloud computing sector.

This sector is growing rapidly with analysts speculating enthusiastically that the overall cloud market could reach anywhere from $40 billion to $70 billion by 2016 or earlier.

But with extreme growth comes extreme competition. This competition is not coming from the under $6 billion market cap companies similar to Rackspace.

The company’s competition comes from the largest names in tech – Microsoft and industry leader Amazon.

For those unfamiliar with the term “cloud computing” the business is quite simple to describe.

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Buy, Sell or Hold: Is Lennar’s Big Move Just a Sign of Another Housing Bubble? – Money Morning

All you have to do is look at a price chart of Lennar Corp (NYSE: LEN) to see the proof that the U.S. housing market is on the mend.

Since January 2012, shares of the Miami, Fl.-based new homebuilder have more than doubled.

In fact, since the industry nearly collapsed six years ago, new-home construction for builders like Lennar is now clearly on an upswing.

According to the March 2013 report from the U.S. Commerce Department, new home construction was on pace for more than one million units for the first time since the gaudy days of June 2008. 

Much of this home-buying fervor can be attributed to a few important points: 

    1. A pent-up demand that has built up over the last six years,

    2. Low inventories,

    3. And an outrageously low interest rate environment thanks to the Federal Reserve.

The question now is whether or not the “Housing Bubble 2.0” still has legs, making Lennar Corp. a smart new buy with plenty of room to run.

Is Lennar Still a Buy?

Of course, evaluating Lennar on its own merits is a fine exercise in due-diligence.  

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Buy, Sell or Hold: With 46 Million People on Food Stamps This Is The Stock To Own

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves…