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OCZ Technology Group AŞ Message Board

  • tomdom1953 tomdom1953 Sep 21, 2012 7:34 PM Flag

    OCZ must worth at least half of FIO

    Has the enterprise PCIe and a lot more and Controller and IPs. It is just not gotten the time. 1/2 of FIO is about $800-900M. That is today. If new management gets act together maybe even surpass FIO. This is like a Ferrari whose got a Flat Tire with no replacement available soon.It will take off. Buy as much as you can, even if it goes lower...even the better.

    Sentiment: Strong Buy

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    • based on the seeking alpha article that just came out it seems that 800-900 million would be about right. They said that there are units in the company that alone are worth 300-400 milion.

      here is a snipett of that article "Time To Sell The Company

      Quarter over quarter, institutional ownership in OCZ has risen:

      (click to enlarge) Image Courtesy of Yahoo Finance

      In fact, 89% of the float is now owned by institutions. It is clear that these holders are unhappy with management, and it is even more clear that their investment is now in serious jeopardy. The company's nearly out of cash, it lacks a CEO, and it faces very serious competition on the solid state drive side from the folks who manufacture the NAND flash.

      Fortunately for the current shareholders, OCZ is worth a lot more individually than it is as a unit. For a company with a NAND fab, the next logical step would be to acquire the technology to develop and deploy its own controller technology. OCZ's acquisition of Indilinx, and its development of a next generation controller, could prove to be of significant value to a larger player. LSI Corporation (LSI) bought SandForce for $322M, Hynix acquired Link-A-Media for $248M, so an acquisition of OCZ for its Indilinx division for around these prices does not seem unreasonable.

      Further, OCZ has quite a bit of exposure to enterprise flash caching and virtualization software via its acquisition of SANRAD. Finally, OCZ's "Z-Drive R4" enterprise PCI-E flash solutions are, as mentioned above, extremely competitive with the best any other company has to offer. With a larger budget, fairly free of cash constraints, the technology here could be developed to be quite competitive with the likes of Fusion-IO and STEC.

      The potential for an acquisition is likely what is keeping the share price from falling even further, so I would recommend against shorting the stock at these levels. Any hint of a buyout will lead to a massive squeeze, as it did in July/August.