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

Violin Memory's Collapse Continues, But How Does This End?

It does not take the analytical skills of a world class investor to understand the problem with Violin Memory (NYSE:VMEM) - it's burning cash at a rate that will leave the company penniless within two years. Now, while some investors may claim that the company will pull a rabbit out of the hat, and while others will be calling for a buyout all the way down, it is important to understand that the risk of permanent capital impairment is real, as OCZ's (NASDAQ:OCZ) shareholders very painfully learned.

That, too, was a company that continued to burn cash at an alarming rate, but since Wall Street - hungry for top line growth - continued to buy into...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details