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OCZ Technology Group Inc Message Board

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  • xtradersdotnet xtradersdotnet Sep 28, 2012 6:16 PM Flag

    Valuing OCZ's IP...thoughts?

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

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    • 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.

 
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