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It looks like the market is on a "risk on"mode on the back of Bernanke's latest comments on possible upcoming Fed moves. In the spirit of the market today, here is a fast growing tech stock that has solid growth prospects and is subject to sporadic takeover rumors around it as well.

OCZ Technology Group (NASDAQ:OCZ) engages in the design, manufacture, and distribution of solid state drives (SSDs) and computer components primarily in the United States, Canada, Germany, the Middle East, Africa, and other European countries." (Business description from Yahoo Finance)

Six reasons that OCZ is a solid speculative play at under $6 a share:

  1. The stock is selling for about half the $11 median price target that the 9 analysts that cover the equity have on it.
  2. Earnings are fast moving in the right direction. The company lost 7 cents a share in FY2011 and is on track to be 12 cents a share in the black in FY2012. Analysts expect big gains in FY2013 with consensus earnings of 95 cents a share.
  3. The company is experiencing explosive revenue growth. The company is marching towards over 75% sales growth in FY2012 and analysts have it posting 40% revenue increases in FY2013.
  4. OCZ has over $40mm in net cash on its balance sheet (over 10% of market capitalization).
  5. The company is consistently being mentioned as takeover candidate. The most frequent acquirer in these rumors is Seagate Technology (NASDAQ:STX). Given its product lineup and growth, this seems like it would make a lot of strategic sense. Data storage has been a pretty active M&A space over the last year as well.
  6. Ultrabook growth will be one of the primary growth drivers of the company over the next few quarters. The stock is also cheap 6 times forward expected earnings.
Source: OCZ Technology: 6 Reasons To Buy This Stock That Is The Constant Subject Of Takeover Rumors