On March 28th, I stepped to the sidelines on STEC, a former leader in enterprise flash solutions that has seen its core business erode substantially, noting the following:
Should the business turn a corner and start to show real signs of life, there will be plenty of time to hop on board. Right now, the cash burn, competitive pressures, and still-shrinking sales with little-to-no visibility, cement the notion that even as a speculative play, STEC is a poor bet at this time.
Indeed, following the publication of my piece, shares have dropped 21%. Further, while I believe that there may eventually be a compelling play once the company's revenues start showing signs of acceleration (and when the price per...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|