Netflix Inc. said it plans to shut down the last of its data centers by the end of the summer, which will make it one of the first big companies to run all of its information technology remotely, in what’s known as the public cloud.

“For our streaming business, we have been 100% cloud-based for customer facing systems for some time now, and are planning to completely retire our data centers later this summer,” the company said in an email to CIO Journal.

Corporate use of the public cloud, in which users share the resources of a service provider, is rising. But many companies still run sensitive software in their data centers or in private clouds, in which a company has dedicated cloud resources from a third-party or within its own premises. Many companies weave all of these assets together in what is known as a hybrid arrangement. While some smaller companies and startups are known to rely entirely on the public cloud, few large corporations do.

Source: Netflix to Pull Plug on Final Data Center – The CIO Report – WSJ

 

Company name REX American Resources Corp
Stock ticker REX
Live stock price [stckqut]REX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $77.16
Target stock price (averages with growth) $62.48
Target stock price (averages with no growth) $28.27
Target stock price (manual assumptions) $57.33

The following company description is from Google Finance: http://www.google.com/finance?q=rex

Rex Energy Corporation is an independent oil, natural gas liquid (NGL) and natural gas company. The Company has operations in the Appalachian Basin and Illinois Basin. In the Appalachian Basin, the Company is focused on its Marcellus Shale, Utica Shale and Upper Devonian (Burkett) Shale drilling and exploration activities. In the Illinois Basin, the Company is focused on its developmental oil drilling and the implementation of enhanced oil recovery (EOR) on its properties. In addition to its drilling and exploration activities, the Company is also engaged in oil and gas field services, where the Company provides water sourcing, water disposal and water transfer solutions for completion operations. The Company operates in two business segments: exploration and production and field services. Its core leasehold consists of interests in developed and undeveloped crude oil, NGL and natural gas resources located in the Appalachian and Illinois basins.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in REX American Resources Corp as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. Since this company is in a market that I do not want too much exposure to, I am removing REX from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of REX American Resources Corp calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $49.93
  • Growth: 0.13
  • Current EPS (TTM): $8.64
  • P/E: 5.8
  • Future EPS Calc: $15.91
  • Future Stock Price Calc: $92.32
  • Target stock price: $57.32

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I hope that this makes you a Confident Investor.