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Jeff is the publisher of the "Trade in the Zone" newsletter and Trade in the Zone Blog (http://www.tradeinthezone.com/). Jeff has been trading and educating investors for 20 years. He has given lectures at the University of Maryland and Johns Hopkins University, taught night courses... More
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  • STEC - SSD drives are the next big advancement in computers 1 comment
    Jun 17, 2009 05:18 PM | about stocks: STEC

    Stec (STEC - $23.70): Flash memory storage products maker Stec raised its second-quarter outlook 50% on strong sales of its ZeusIOPS solid-state drives (SSD). I emailed a very tech savvy friend of mine about this company and here is his reply. "The success of this company will be based on the success of the deal with HP. The drives have been out for a while but no big name to back them. Definitely has big potential, SSD drives are the next big advancement in computers, we have been using the same basic storage technology for 20 years. There are probably 20 manufacturers of SSD drives but these are the first that I have seen using the SAS or FC interface, they are specific to enterprise level server hardware. The other SSD companies produce drives with SATA interface that only works in consumer hardware, like laptops and PC's." I think STEC has upside to $30+. If looking for a stock replacement trade...I also like the August $25 calls.

    Long STEC

    Stocks: STEC
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This post has 1 comment:

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    It's not something I would recommend sitting on for very long, unless you're hoping for an off the charts acquisition. But once other companies come into the space and commoditize the drive form factor SSD, like Pliant Technology. The major OEM's will second, third and fourth source the drives and STEC will become another low margin drive company in a crowded market. Especially if some of these hot startups start getting acquired by the likes of Intel and other major players, considering STEC isn't much on future proofing market leadership through R&D spend.
    Jun 17 06:26 PM | Link | Reply
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