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...

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