OCZ forward guidance is an absolute home run for investors and is why the stock is up 5% after hours. 23 million shares short staring this epically bullish fact in the face:
"Co issues upside guidance for FY13, sees FY13 revs of $630-700 mln vs. $451.69 mln Capital IQ Consensus Estimate"
this means people will be RACING to cover their shorts starting tomorrow morning. I bet we see a 12 million share traded day. OCZ is telling the market that orders in upcoming quarter are absolutely humongous. their order book is busting at the seams. OCZ longs will have a glorious day tomorrow. sorry shorts. Stevie Cohen of SAC Capital called this when he bought 2.5 million shares recently. Stevie is smarter than you. He LOVES to destroy shorts that are lined up against him. this stock could seriously hit $10-$12 tomorrow. OCZ business is ramping much much faster than people thought.
I don't think we're going to see a short squeeze. There is enough negative in the short-term to continue to fuel the short position, so they have time to exit orderly. Even with the fantastic guidance this stock hasn't been given the benefit of the doubt regarding valuation, I don't think that's going to change now.
I suppose it comes down to how much those short believe the growth story. There are certainly 3 areas of significant revenue potential not included in guidance (R4, Ultrabook, IP licensing) so it's going to be a hold that makes less sense as we move into the second half of this year. Even this said, one could infer from the CC that there aren't any/many Ultrabook wins for the new fleet coming here June 5th. Hopefully I'm wrong there.
Long story short, there's still plenty of indecision. I'm bullish on the long term story, hope I'm wrong about short term action, but I just don't think there's going to be a squeeze.
There are companies out there that are increasing revenues and actually making a profit who are getting hammered after earnings because the profit didnt increase enough. These guys are increasing revenues and losing more money. Short squeeze? Dont hold your breath. In fact, don't be too surprised if it closes today under 6.