It's PRETTY OBVIOUS, THE RUMOR WAS CREATED FOR OPEX MANIPULATIONS.
It would be great for STX if they got a decent multiple after this... I am getting really sick of the 2 handle it has... I know everyone thinks HDD is a thing of the past but there is just too much demand for cloud for SDD's to fill. Plus HDD are a cheaper route at the moment.
STX is printing money right now and returning it to shareholders in the form of a huge buyback and a generous dividend. If this acquisiton gives them a better multiple STX could easily double or triple in a year. If they could sell at 9-10X earnings I would be one happy camper!!!
And I am not a pumper, just a long who might get a little too excited sometimes...
Earlier I said I hope STX doesn't pay a billion plus, but the more I look at the situation the less disappointed I would be it they paid a decent premium.
Gave you 5 stars on that post. I'm not thinking STX will pay out a billion, but they definitely are going to have to pay a premium to get OCZ. OCZ is expected to earn a dollar a share next year and that will all go to the bottom line for STX in a buyout. I would be interested in owning STX if they buy an SSD company. Let's see how it plays out. I'm thinking OCZ will go for between $10 and $12 a share. Possibly not all cash, but with STX trading so cheaply, just maybe it will be an all-cash deal.