Two stocks being watched, VOD and RAX

VOD,Vodaphone appears to be an undervalued equity.  Its telecomunications footprint in Europe, India, the Middle East, and Africa is strong.  Near term benefit from these positions is not assured, but long term it is more than probable.  Paying a 5.9% dividend and at the bottom of its trading range for the year, the picture could be painted postively or negatively.  View here is positively.  Their capital position is solid based on accepted ratios, although the nature of their banking relationships is not known here.  Their revenues are somewhat diminished of late but their cash flow is ok.  The risk/reward looks positive, but not guaranteed.

RAX, Rackspace Hosting has had a collapsing stock price since an earnings report last week.  Now at around $58, it traded at $80 in September and $75 before the earnings release.  It traded at $41 in June '12 so expections were obviously quite high and were not met.  It missed the consensus earnings estimate by just a penny and slightly exceeded revenue projections.  Once again this shows that consensus has nothing to do with what the real holders and the most optimistic are expecting.  This has been a seriously good long term holding here, and modest additions have been made today.  Once again, however, one wonders what they don't know in this world of little real coverage by the analyst community of small to mid cap equities.