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OCZ Technology Group AŞ Message Board

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  • xtradersdotnet xtradersdotnet Sep 28, 2012 6:15 PM Flag

    Valuing OCZ's IP...thoughts?


    so the rumored 1.14 billion that was being thrown around by STX or the rumored 700 million being thrown around by WDC is way way way more than the OCZ vaule of 400 million it was at the time of the supposed offer,

    so stx was willing to pay nearly 350% more than the company was worth? and WDC was willing to pay 90% of what the company was worth?

    am i wrong? or looking at this in a different way?

    if 350% is till the premium then a current buyout price would be close to 1 billion or 14 ish a share?

    give or take a few dollars but i hope you get my point?

    what would the current estimated offer be if any company were to want to buy them out? In your view?

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    • @xtradersdotnt

      Not sure...depends on cash remaining and other fundamentals at next ER You figure, I did (sold entire position) at a profit this week.

    • you seem to know your numbers and have done homework on this so i am curious at your estimated buyout offer value?

      • 2 Replies to xtradersdotnet
      • i will be very honest here. there isn't a single company out there that wants everything ocz has to offer.

        it has way to many parts to it to be attractive as a whole, and this is exactly why they made a poision pill which is screwing you all. if someone came in and bought up the companies shares then sold it off piece by piece it be worth more then it is currently. however nobody is going to buy the whole thing outright to do it when they be paying a premium for it.

      • Don't see any buy out interest at all.

        Basic reason is that, at this time OCZ only producing LEGO SSDs using common off the shelf parts (e.g. Marvell, SanForce, Micron), negative cash flow,never made a profit etc..

        Had 3 other companies on my M&At radar, STEC , Smart Modular (formally SMOD) and Texas Memories.

        Since IBM bought Texas Memories, but Smart Modular and STEC still in play. All players in the high margin Enterprise space.

        Before being taken private last year by Silver Lake Partners, Smart Modulator was profitable, had + cash flow and more than $700M in sales, (e.g. +59% Y/Y growth), positive earnings, positive cash flow and more than $130M of cash.

        STEC has a ton of cash on the balance sheet making its enterprise value only 114.30M (far better than OCZ). Much more IP too (e.g. CellCare, ASIC controller and software).

        Sold OCZ position 7/30 and not even considering touching this stock until after earning on 10/10.

        Chart still has a H&S with a price target in the $2s.

    • You're still making one assumption that most likely is not true....there was an offer for 1.14 billion. If there was, OCZ would have HAD to present it to shareholders. If they didnt, that is illegal.

      Please show me one CREDIBLE source that shows actual buyout talks existed. And no, providing sources that copied Theos #$%$ story do NOT count.

      I'll guarantee you can't do it because there isnt one. This whole thing started bc of theo. There isnt one other "source" that has confirmed independently of theo that buyout talks existed. Period.