Seeking Alpha

OCZ (OCZ +3.3%) rallies for the second time in two weeks in response to news a fellow enterprise...

OCZ (OCZ +3.3%) rallies for the second time in two weeks in response to news a fellow enterprise SSD vendor is being acquired. Last week, the trigger was Western Digital's purchase of sTec. Today, it's SanDisk's purchase of SMART Storage. Though OCZ sells enterprise drives, the company is more dependent on consumer SSD sales than either of the acquisition targets. Fusion-io (FIO -2.1%), which joined OCZ in rallying last time around, is selling off.
From other sites
Comments (5)
  • Philip Marlowe
    , contributor
    Comments (1411) | Send Message
    I wonder why OCZ is rallying. It is obvious the acquirers are pointedly avoiding OCZ and at this point there is no-one left to acquire them.
    2 Jul 2013, 11:20 AM Reply Like
  • rob.L
    , contributor
    Comments (38) | Send Message
    you really have no idea what you are talking about lol. There are plenty of other public and private companies out there that would love OCZs IP. I do believe STX or Micron will buy them soon. Anyone else wonder why the new Vertex 450 is using Micron packaged nand instead of the usual OCZ? Why would they stop packaging their own nand if it provided them with a cost savings? Will Micron be selling OCZ branded drives soon?
    2 Jul 2013, 11:27 AM Reply Like
  • short term investor
    , contributor
    Comments (40) | Send Message
    Lenovo Computers is also interested. Their technical folks were there at the OCZ headquarter very recently. But at the end of the day, I think STX will acquires OCZ cheaply
    2 Jul 2013, 11:42 AM Reply Like
  • QTurner
    , contributor
    Comments (21) | Send Message
    Rob.L thats a very solid point. Still can't help but sweat over how far behind their financials are. Regardless, their products continue to sell so they are generating revenue and are getting great reviews as well. That September deadline to file feels so far away...
    2 Jul 2013, 11:46 AM Reply Like
  • serndipity
    , contributor
    Comments (193) | Send Message
    Can fathom anyone being interested in acquiring OCZ.


    While they once had some success in the consumer market, that has changed. Today there are a number of SSDs offering superior performance and customer satisfaction, in a commodity marketplace with low margins.


    Although the company has tried to enter the high margin enterprise class SSD with product offerings, they have never had much success. Per 10Q/10K statements and CC transcripts, their enterprise business has never been more than 15-20% of revenues.


    More importantly OCZ; has never made a profit, hasn't filed a 10Q/10K for more than a year now and has said it will also have to restate prior SEC filings, is being investigated by the SEC, has several class action law suits pending, has defaulted on 3 loans in the last 18 months etc..
    2 Jul 2013, 03:39 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs