OCZ Technology Group, Inc. Message Board
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Is Wells Fargo cutting OCZ off?
I'm trying to figure out what's going on with the loan. OCZ only owes $7M to Wells Fargo now. So are they being forced to pay back the entire loan? If so, where is OCZ going to get cash to keep the lights on?
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8-Ks just released cleared this up...
Sentiment: Strong Buy
- 1 Reply to aurin_res
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Go read the Sec on the company web site and what you see in the three page one that talks about the first and second amendment agreements. I am trying to figure out what the Jan 15th to Feb 15th is about.
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OCZ is confident enough in themselves they don't see the need for so much credit.
- 1 Reply to bjvhottie62
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I was wondering the same thing, they would have to have met a cash on hand to reduce the debt limits unless the bank did it but the its says the company amended the credit line.
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Maybe I'm reading it wrong but it looks like they can still draw down $20M if they need to. They'd probably do so if some sort of opportunity presented itself (some sort of OEM or enterprise order).
We still don't have a clear idea of cash flow because they left out cash and accounts receivables but I think they're getting close to being cash flow positive. The fact that Wells Fargo is still letting them use a credit facility should be a big enough "tell" that they're turing that corner.- 1 Reply to josephjpeters
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I agree and it say the company amended the credit line is that just company talk? What were the product litigations I missed that one? I did see the word excellent in there and that is a big word coming from RS, at least I hope it is.
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yep and they signed over 65% of BF3 LOL....
- 3 Replies to pipster1234
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Where is your reference to back that statement up on BF3?
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pippy you dumb butt they are using indilinx as collateral.
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at this rate OCZ is delisted in April and out of business by year end. no buyers would touch this turd.
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they are making money on sales so they are paying down credit line. they apparantly don't need the cash. when they finally file that is when we will see. good sign imho pay down credit line inventory at 50 mil and moving , product receiving nice acceptance so this is really looking good. also the investigation is complete and the vendor coupons will not be accounted for properly. after they do file and catch up you know one thing from here that you will have a good company with a great product performing well. good luck.
Sentiment: Strong Buy
- 2 Replies to winwin2734
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What makes you think paying down the credit line is OCZ's choice? When your a company that's in financial trouble, you don't naturally rush to pay off your debts. They have had to sell down their inventory at below value. Their inventory was worth $75M when they owed $15M to Wells Fargo, now it's worth $50M when they owe $7M to Wells Fargo.
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now be accounted for properly instead of not be accounted for properly. t/y
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