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STEC, AŞ Message Board

  • taexpert928 taexpert928 Feb 26, 2013 12:28 AM Flag

    12 Reasons To Own STEC Shares

    1) Management has already taken decisive action during the last few months to achieve cost reductions that are expected to yield savings of $8.8 million in Q4.
    2) STEC Management continues to implement aggressive measures to reposition the company from an OEM-focused business model to an approach that also derives significant sales from direct enterprise customers, which will create meaningful additional value for STEC's shareholders
    3) Balch Hill/Potomac is committed to an agenda to take control of STEC and selling the company.
    4) Balch Hill/Potomac have already 14% of outstanding shares and most likely will try to accumulate more shares to take control of STEC
    5) STEC's Board and management team remain fully committed to creating value for all shareholders through the successful execution of the company's strategy
    6) STEC introduces new storage products to compete with Fusion-IO
    7) STEC has $186M cash and is trading 12% above its cash holding.
    8) At $210M market cap and price per book of 0.75 , STEC is a takeover target
    9) Q4 Earning will most likely be better than estimates because of recent $8.9 cost cutting and management motivation to improve its image prior to the shareholders meeting
    10) STEC may announce in 3/1/13 special dividend due to its cash holding of $186M and pressure from Balch Hill/Potomac
    11) On November 21, CEO and co-founder Mr. Mark Moshayedi purchased 32,828 common shares at $4.50/share in a transaction worth $147,726
    12) STEC is strong takeover target because the hard-disk drive manufacturers such as Seagate and Western Digital are on the prowl for a greater presence in the solid-state drive market.

    Sentiment: Strong Buy

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    • dbenporat Mar 7, 2013 2:08 PM Flag

      Hiring new 52 engineers is a good sign for the coming 4Q earning results. STEC is hiring because they forecast better revenues in Q1 and in 2013.

      The guidance for Q1 will be very good.

    • dbenporat Mar 3, 2013 7:45 PM Flag

      "Barron's says with all of STEC's patents and client wins, "STEC is far more likely to be bought out than pushed out of this market."

      And exactly how long ago was that in Baron's. I suspect that was long, long ago.

      Write this down and save. The brothers will not sell this company. It will have to be taken from them by force

    • No assets get monetized without a sales force. At last count they have 4 North American Sales Representatives and 17 openings. The drives, and now LDPC cores and FOS software won't sell themselves.

    • STEC is strong takeover target mainly because the hard-disk drive manufacturers such as Seagate and Western Digital are very motivated for a greater presence in the SSD market. Where you found that STX and WDC are in interested in SSD market?

      • 1 Reply to taexpert928
      • Note that STEC has no presence in the consumer SSD market. Only enterprise and OEM.
        STX has bought stake in Virident and also works with Micron, I believe. They also have a stake in DenseBits. WDC bought the Hitachi HDD and SSD divisions. They work very closely with Intel.
        Again, I don't think the brothers will just give up STEC. They will have to be forced out.

    • Can you list where you see BH & Potomac having 14% OS? I still only see BH having 8.8%, though it was reported that they had 9%. For them to have 14%, Potomac would have to have 5% or at 5% and then they would show up in listings for that amount. But I don't see any listings for Potomac at or 5%. Maybe I'm not looking in the right place.

      STEC isn't a takeover target because no one wants to get into a hostile takeover which is what it would take. Besides, STX and WDC have already passed up on STEC and neither one needs STEC.

    • dbenporat Feb 26, 2013 1:24 AM Flag

      More importantly, this does not include any patent assets, which could be worth considerably more than the current market valuation suggests. In fact, according to the interview with the interim CEO, the company, in addition to its $187M in cash, has $200M in other assets. Even if he is exaggerating the value of the "other" assets by a factor of 2, the company is still trading far below liquidation value, and certainly very close to tangible book.

    • Correction: The cost saving of $8.8 million is annually

    • Also Moshayedi family hold 24% of shares and the tiny float of 24M shares makes a case for imminent strong bounce .