Ashraf Eassa
Long/short equity, contrarian, independent research, tech

STEC: A Long Way From Breakeven, Cash Burn Continues

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...

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