I realize that Rule 36 of the internet says that you cannot challenge or
question a stock in any fashion without being “secretly short”, but I
think it's worth asking some questions about Red Hat (NYSE:RHT).
On one hand, I do like the cash flow that this business produces, and I
do believe that there are real opportunities for the company in
middleware, data center, and cloud. On the other hand, the trend in
billings and margins makes me wonder if this company is already
transitioning out of its growth phase. Accordingly, while I wouldn't bet
against this stock with my own money, it's hard for me to scoot this
name up my watch list to a point where I'd seriously consider buying it
with my own money.
Continue reading here:
http://www.investopedia.com/stock-analysis/062013/relief-red-hat-longterm-growth-debate-will-rage-rht-ibm-orcl-vmw-msft.aspx
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