Last night Cramer put Equinix, Inc. [[EQIX]] in the “sell block,” based upon some far fetched idea that EQIX’s clients no longer need them. He cited some new Intel Corporation [[INTC]] technology that renders EQIX’s server farms useless. Oh boy, is he lame/wrong.
First of all, thanks to 4g, led by the smartphone, bandwidth is in high demand. Not only did Equinix, Inc. [[EQIX]] smoke quarterly estimates, they guided up for next quarter and for 2010. Not only is business great at EQIX, they are running out of capacity.
If what Cramer said is true, don’t you think the company would be keen to this sort of competition. See, I am just a guy who manages money/blogs like the wind on the internet. Cramer is just some teevee personality, with connections to all sorts of nefarious people on Wall Street. Tell me, what in the world does Cramer know about data storage, other than a few of his colleagues being short the name?
Here are the hard facts, without opinionated rabble:
- EQIX is increasing the amount of cabinets in Europe by 1,700, thanks to strong demand. As of now, 75% of the 1,700 are pre-sold. Oh, the lack of demand is just so startling.
- 96% of revenues are recurring, usually 2-3 year contracts. In other words, businesses are not in a rush to fulfill their bandwidth needs elsewhere.
- Current capacity is 81%, near historical highs.
- And, finally, the company has guided revenue estimates up from $863 million to $879 for ’09 and from $1,023 to $1,055 for 2010.
In other words, despite what Cramer is saying on his teevee show, the future looks bright at Equinix, Inc. [[EQIX]] , much to the chagrin of the very vocal 20%+ short position. Hmm, I wonder is Cramer knows anyone short Equinix, Inc. [[EQIX]] from the $50’s?
NOTE: I will increase my position, once the stock hits the high $80’s.
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His analysis seemed short sighted, he did not factor in any increase in the numbers of businesses migrating over to cloud computing.
Sounded like a hatchet job to me.
Cramer is a hipster
Cramer is a fuckchop,
Throw the nasty little fucker in to prison. Please. Someone.
Cramer is an idiot, the world will only need more bandwidth and more computing power….if someone can run a platform on 1/2 as much as hardware as they need today in most cases they are just going to add more features to their platform and consume the same amount of hardware…they are not going to cut their farm down.
Exactly. Bandwidth is like chocolate cake. The more cake available, the more you eat.
The Fly is God.
Comparing Oklahoma football to Kansas football is equivalent to comparing The Fly to Gary Kaltbaum.
KU still has a football team? Hopefully the basketball team kicks their asses in front of the student union again, or spreads their law-breaking ways (Morningstar etc.)
I like Gary K!
I have a lmit buy in on CSCO. I don’t know what Cramer thinks about CSCO. FTK Cramer.
+1000
Amen,
The “mantra” of all large and “corporate” IT organizations that use Equinix’s technology is “save save save.”
(IE: reduce cost.)
However moving a companies “data center” needs is no easy task. (IE: it’s fucking expensive for all sorts of qualitive and quantitive reasons…and it doesn’t matter if you are a small cap burrito or a large cap dinosaur of a company.)
The point…EQIX will have great customer retention.
Once customers are in …if EQIX delivers…I don’t think they will move on to a competitor or big ass capital expenditure that would be new technology from Intel.
My guess is he is talking about OctoCore technology and running numerous VM’s on a single piece of hardware. This is true that EQIX does lose a little business due to a smaller foot print. However as an EQIX customer myself I can tell you that the place is first class and will be needed more and more as people deliver rich content and will be looking for 5 – 9’s of uptime and a provider independent network connection. You see EQIX is big enough to provide multiple provider fiber links, for instance at my site we have AT&T, Cogent, Verizon, Sprint, UUNET and Qwest providing peered fiber links to the building. With local peering you can jump right to the providers link of the internet right from that location without having to make multiple hops out until you get to the backbone. Bottom line I agree the footprint is smaller at EQIX but its only smaller until people demand faster and faster access with rich video content which requires more blade chassis and more power. I shit you not.
Great feedback here. I thought you guys were all imbeciles. All of a sudden, you have brains.
If I was a zombie, I’d take a bite out of your skull right now.
Its warm and chewy on the inside.
G & Y, thank you. That’s info you can’t get on Yahoo Finance.
I’d love to know: are you long EQIX?
The only one who is wiser than anyone is everyone.
Use The PPT or find cat hair in your toothpaste.
Who’s Cramer?
TBUS BCRX – favs to own for next week
By the way one thing you guys need to remember about EQIX is much of their space is already sold to resellers such as INAP who take on the risk of peddling the space so just because some space is vacant doesn’t mean that EQIX has not sold the space to a reseller. Just be aware of that, its like a sublease in many ways.
Gap,
Do you like any resellers?
It seems they are betting that bandwidth needs will expand faster than an American’s waisteline at a Cheesecake Factory
I really like INAP in the cdn space and their pnap technology for route optimization. However INAP has a few internal problems that hold it back. I really like EMC and anything around DeDuplication. Next biggest thing in technology will be medical image storage/availability.
Gappy —
Thoughts on Neteeza (sp?). Guy in my building here (sublessor) raves about them and their “blades.”
.
_____
PS –where the hell you been, Brofis? Don’t tell me you’re concentrating on your bidness and not trading.
____
Kinda like code sharing….
Great post, great comments. Groupthink? Not a chance.
If EQIX get’s to the gets to the high 80’s I’m in.
went long large caps into the close. this fucker looks primed higher.
also RE: Equinix, the interesting thing about colos is that we’re about to see a huge shift in perspective in the way buyers price cabs, power is an increasing cost relative to bandwidth (energy costs are a big unknown, fiber bandwidth is always increasing and getting cheaper). many colos are hitting capacity because they’re killing the local grid, you might as well consider 80% full as 100% full (power consumption is getting more dense, you can fit enough Blade servers in a cab to throw the breakers). many colos don’t want/allow customers drawing more than 15/20amps per cabinet. as power is going to be a huge factor in cost, it’s a good thing natural gas is so cheap these days…
Or Iceland?
http://news.bbc.co.uk/2/hi/programmes/click_online/8297237.stm
lmud,
“(energy costs are a big unknown,”
Ya think it ain’t goin up?
Anyway, is anyone planning to introduce lower energy consuming hardware?
electricity costs in the US are a function of natural gas (most states with serious colo operations seem to be burning natural gas), crude has nothing to do with it. natural gas is ridiculously cheap. euro is a bit of a complexity and I don’t understand it. also, colo operators are the end consumer of electricity, their pricing power and lock-in is a gray area.
lower energy consumption hardware is a bit of a misnomer in the server space, you need to calculate FLOPS per watt, computers are always getting faster and the speed increases are far faster than power consumption. also, lower power consumption, speed, and price often come hand in hand (e.g. a development in smaller die/process sizes will benefit all there). a more interesting space to look at is maximizing capacity (ensuring that you’re not wasting cpu load/power on every machine you have), which AMZN and RAX are doing very well. for reference, here’s what google’s servers look like, of course, there’s only one google, everyone else doesn’t need to (and won’t) pull that kind of shit.
Power is by far the biggest cost at the colo. You can only fit 2 30Amp circuits per cab and a single HP Blade chassis full of blades sucks down about 12 Amps by itself. Better to sell half cabs with 2 30Amps each for EQIX.
Douchebags watch Cramer…….second post
Cramer is always wrong even if he is occasionally right.
Refer to rule number #1
Refer to rule #2
What’s up (down) with MaVIS?
As long as they can stay in business for a few more quarters, this quarter’s earnings don’t mean shit. They’re 10 years old but really they’re like a new business with the best technology in the space – best brightness, size & energy consumption.
Or is there someone new on the horizon?
Not in portables but my son got this Benq Joybee for $300 which retails around $500 and it maintains resolution and can be color adjusted for the wall color it is shooting onto:
http://photos-a.ak.fbcdn.net/hphotos-ak-snc1/hs254.snc1/10118_529141299805_37402788_31111558_5357742_n.jpg
He says it measures 5″X2″X5″ but using LED for lighting is 10 times brighter than MVIS’s product while only consuming 60 watts.
Move up in the market is over until December……true story.
A post like yours is verboten this season;
Because it contained no ryhme or reason.
Unless, of course, we’re soft through December;
Then his comment you’ll surely remember.
Isn’t this the same Nostradamus joker who kept posting that we rally thru October because of the 40-wk cycle? Now he’s saying that he was just kidding?
Not saying that I was joking – I made money on the long side in October….didn’t you? I traded my thesis for the bulk of October and made Madd Money – bwaaahahahahahaha (sorry, just tring to keep it relevent to the topic). If I was Casin or some such fool that looks at history, I would have kept my money out of the market during this month – instead, I increased my net worth by 6.5% during the month based on my thesis. Does that mean I keep my cash in the market until the little fukers walk up my stoop looking for a sugar fix – gimme a break. I am looking for the meat of the move. I got it, and now am flat through November ready to take my long awaited trip to Ireland beginning Nov 1st. I will be back in the market in December looking for a continuation of the up move. Does that mean I pile back in December 1st – rofl! Horseshoes and hand gernades fellas. BTW, an 8% move in the SPY during October is a pretty good sign that I got it right.
You’re going to miss a week, at least.
First conviction is always the right one. You’ve stumbled doubting yourself before.
Have a nice time in the Auld Country. Say hello to the little people.
They’re still there.
___
One minute you’re sucking his dick, now you don’t like him because he called out EQIX, oh jeez, give me a break…you have lost it, or just suck.
your mother is a goat whore.
I never liked Cramer, just had to hate on Jon [sic]. Get your facts straight, boy.
Booo Hooo . Cramer is irrelevant , the market is right and im loving my EQIX puts. Guess this is another day where the bears took it where the sun dont shine ha ha .
Have a good weekend everyone! I loaded up before the close on at least 100 different put options positions. The indexes are trading over every popularly used moving average therefore I thought its best to fade the main trend and simply short it all. This strategy has worked for me since March and you know the results of that strategy.
I have been receiving some hate mail lately. Why do you guys not like me?
What?
Today?
Get me the copy editor!
“This strategy has worked for me”
needs to be changed to:
“This strategy has worked me”
Grazie.
____
1. SPX going to 1040
2. EQIX moved with GOOG until this last EPS and aquisition. It’s gonna flounder for a while.
3. Cheap way to play colocation is SVVS. It was up on spec that EQIX would buy them–and they just may, just not now.
BTW–I remember a guy on Fox recomending this stock early last year in the 50’s.
What does Cramer know about data storage? About as much as Fly (speck). Oh wait, I forgot about your monstrous IQ. Tell us again, how high is it O noble one?
i think fly had a 75% to the upside IQ last time i checked ..
eisen,
Where’s your blog again?
You know, with all your picks, commentary, etc.
How could I possibly compete with the love of your life?
Besides, I find fly entertaining as long as he doesn’t overuse the korus (sic) like many good songs gone bad.
As for his stock picks? Come on they are all over the board. Pure neurosis, even worse than mine. Too much caffeine is my guess.
IQ is 155.
My point is Cramer knows no more than I do, yet he claims to be some expert on data storage.
This is what I know:
All of the analysts who cover the names are bullish, based upon obvious growth patterns,
The company is behaving like business is booming.
And, finally, they are CRUSHING numbers.
Enough said.
Fly,
I went short today via out of the money put options like I always do on EQIX. This thing is going down big time and I will be on the other side of the trade…
Tim:
How could you go anything as that would mean you have capital. But you’ve lost it in the rally.
Fly, you are being an idiot.
Increase position? Why dont you sell your longs and then wait for $80 to rebuy. Makes no sense to hold onto a loser averaging down. EQUIX wont see $100 again for a long time.
I just wanted to give you guys an update on my site. I see a few guys here imitating me, please stop. There is only one Tim Knight.
I have let the audience take over the various sections and you can see what that has done. There are now 3-4 page essays on different economic issues. Now I have received many emails asking what does any of this have to do with trading. You thought this was a trading bog not a site that reports on the economics. Hold on guys, as long as I can sit back and do nothing and the lemmings come to boost the traffic rank then everything is ok. Hey, it works, that all that counts. At least I am not blowing up like the evilspeculator website, its all good.
The truth is that after that disasterous PETS trade I’m scared to make specific calls and put my neck out there like ibankcoin. Wrong calls means less site traffic and I need the traffic to promote my book and prophet.net. I have been receiving emails from upper management at ThinkorSwim asking me to stop posting such atrocious calls. That PETS call has scarred me.
All I have to do is every now and then post up a youtube video and all of you can jump up at it posting up a bunch of garbage in the comments section that you can’t really make a trade off of.
The watchlists have come down due to my poor performance as a gambler…errr I mean trader. I posted an excuse that it was because of a site loading issue, but I think you figured out the site loaded just as fast with the watch lists then without.
I wish everyone luck next week!
The guy lives in Silicon Valley, think he could find somebody to speed up his cheesy javascript portfolio widget? Or is he a pariah there as well because he gives everybody in the business a bad name by telling stories about how he invented the internet.
Re: My October mantra of “we rally through October”:
Not saying that I was joking – I made money on the long side in October….didn’t you (Bobby Boucher?)? I traded my thesis for the bulk of October and made Madd Money – bwaaahahahahahaha (sorry, just tring to keep it relevent to the topic). If I was Casin or some such fool that looks at history, I would have kept my money out of the market during this month – instead, I increased my net worth by 6.5% during the month based on my thesis. Does that mean I keep my cash in the market until the little fukers walk up my stoop looking for a sugar fix – gimme a break. I am looking for the meat of the move. I got it, and now am flat through November ready to take my long awaited trip to Ireland beginning Nov 1st. I will be back in the market in December looking for a continuation of the up move. Does that mean I pile back in December 1st – rofl! Horseshoes and hand gernades fellas. BTW, an 8% move in the SPY during October is a pretty good sign that I got it right. Who is to say that the market doesn’t rally through the end of the month? However, it will not be the easy money.
After doing some DD and looking at the numbers I bought a small position in JAH @ 27.40 at the close Friday…. GO G_MEN
Don’t forget the Junkees, too, tonight.
___
You sound like a typical discount house moron. I don’t sell positions because they go down. I build positions based upon an idea. Also, how do you know the stock won’t see $100? What are you smoking?
Take the cash and buy call options? From Barron’s article today:
Rather than just using options to cost-effectively express stock views, or as natural leverage for event-driven strategies, the post-crisis options trader frequently uses what he knows to help clients formulate tactical and strategic opinions not only of stocks, but of sectors and markets, too.
Now, many traders are telling clients — or acting unilaterally for their own proprietary positions — to protect large gains in their portfolios.
Some are buying index options to hedge all their investments. “Index protection has been a resounding theme here the last week,” the head of hedge-fund derivative sales at a major international bank said last week.
The same type of maneuvering is evident in many components of the Standard & Poor’s 500 index.
http://online.barrons.com/article/SB125633643222904657.html?mod=BOL_hpp_dc
the options market is still broken. recently options are the shiny new cars folks chase to goose returns through eoy. result is that the premium is distorted as as too many jokers chase the same idea. the only one who wins here are the options writers with a balance sheet big enough to pin a stock at expiration.
if you chase options
– make sure there is significant volume and market cap in the underlying (you don’t necessarily get both)
– take the time to price the premium, don’t be afraid to walk away if it seems egregiously large
too many times this year i have bought options on the expectation of a breakout only to see the premium evaporate on the breakout. my advice is to stick with stocks.
Fly loses.
Broke Faztard !!!!
Could this be true, the DEVILDOG is alive and well?
So the administration’s and Bernanke’s positive comments have helped propel this rally. In 1930 Hoover made positive comments as well, eight months after stocks fell 42%.
I aglee with Mistah Fry!
Clamah is bote tings!
Rying
AND
Long!
.
Hmmm, a french resturaunt
http://www.youtube.com/watch?v=BlK62rjQWLk
Jake,
Doesn’t Auld have to do with Scotland rather than Ireland? – hmmmmmmm.
I always doubt myself – my nature. However, didn’t happen in October. I’ll leave the crumbs to others.
Fly,
I swear that Cramer reads your blog and STEALS ideas and occasionally tries to man handle you when he thinks he can.
I wish you could do something about that fake Joker.