The stock shot up like a weed on a sunny spring day. Red Hat shares rose 104 percent, making it the top gainer among 28 public companies based in the region. It highlights an adage of business: performance pays. Red Hat, after bolstering its executive ranks and making other tweaks, has reported solid sales and profit growth. In the most recent quarter, which ended Nov. 30, it beat analysts’ expectations for both.
the obigatory “RedHat is Evil” comment.
Please think twice before you start slagging off RedHat (or any other company for that matter)
They are proving that selling services based upon Open Source Software does work. Other companies are trying to follow them but are having differing degrees of success.
They aren’t perfect but IMHO getting better all the time.
disclaimer, I don’t work for RedHat or any other suppler of OSS Software.
I think it’s great to read about this kind of success in the *nix community. As Red Hat works to build a solid reputation for themselves they will build a solid reputation for Linux as a side effect. RH have proved that open source isn’t just for hobbyists.
Red Hat is not evil there just really over hyped. The investement that they received and the product and finnaly the income that they show dont match at all , to make it simple if you invest 1000$ and have 25 cents in return but said you where expecting to make 15cents dont make you a great company to hold stock in it. Income is only partially what to look for.
A great investment is you put in 10$ and the stock make you 100$ if you sell half after 6 month and that you make 5$ in income.
I like the last line of the article :
“All rights reserved. This copyrighted material may not be published, broadcast or redistributed in any manner.”
Also this is more telling to me about whats comming in the futur :
http://in.sys-con.com/read/166807.htm
“Cashing In On Linux: CEO Matthew Szulik To Sell 27% of His Shares in Linux Market Leader, Red Hat”
Red Hat is not evil there just really over hyped. The investement that they received and the product and finnaly the income that they show dont match at all , to make it simple if you invest 1000$ and have 25 cents in return but said you where expecting to make 15cents dont make you a great company to hold stock in it. Income is only partially what to look for.
You’re right, income is not the only thing to look for…however, regardless of what Red Hat’s forecasts were, the fact remains that they roughly doubled there net income from last year. And yes, Red Hat has not earned back its cash injunction from 2004 (i think it was 2004), but there are probably few investors out there that would expect a return on that in such a short time frame. You must remember that businesses have both short term and long term goals.
A great investment is you put in 10$ and the stock make you 100$ if you sell half after 6 month and that you make 5$ in income.
anyone expecting to invest in stock and get a 10-fold ROI in 6 months is dreaming.
Edited 2006-01-02 18:08
The only fact I see is that you like Red Hat because they doubled there net income. The Analyst agree with you. Thats the only Fact I see.
Sorry , for me , too much money whas invested in Red Hat in 2005 ( I whont even add how much money they got in the past ) for the end result that they gave. Some people made a lot of money on the head of Red Hat investor.
Thats my take ( simple , yes but numbers are too big to come up with any other conclusion unless your an analyst ).
You must remember that one does not ask the same result of a corner shop starting enterprise then from a multinationnal with billions invested in it that as been around for 10 years and his said to be the market leader in its category.
Yes RedHat still contributes to Opensource regularly, the kernel and HAL are a few.
Sun wants to eat Red Hat’s lunch and is putting a lot of effort into Solaris to do this. I wouldn’t want to be Red Hat and I wouldn’t want to own the stock when this happens. Which I predict will happen in Q3 ‘006.
It’s sounds to me like they are just trying to drive the price up before the CEO and other Red Hat executives unload a quarter of the stock in their 10b5-1 stock trading plan. See here if you haven’t already seen it.
http://www.linuxtoday.com/it_management/2005122700432INBZRH
I’m pleased to see a open source company is donig great. It proves that many enterprises are willing to try open source products. I’m might not be fond about Red Hat but they are on the open souce side and that’s an A in my book.