they don't do anything - they are just a platform for people writing about stocks. As long as some minimal standards are met your article will be published. Seekingalpha itself takes no stance on any stock. The authors do.
the Apple business won't be that big as they only have the IPad Air left which lags the IPad Mini by far
the outlook is 20% below analyst estimates which signals significant market share loss - management will face tough questions on the call once again
if they can defend themselves this might be a huge winner tomorrow
will wait for the conference call but if the company will be able to prove that their business isn't lost to other vendors I will take a long position
- gross margins up by 140 basis points qoq
- inventories down significantly qoq
- inventory turns improved
- significant cash flow generation
guidance is calling for a very weak topline but a much improved bottom line - clearly the company is on the right track internally
when end markets improve again the company will have sizeable leverage finally
OCZ Heads to Bankruptcy Auction, Toshiba Bidding $35 Million
December 03, 2013
(c) 2013 Dow Jones & Company, Inc.
Flash-storage vendor OCZ Technology Group is headed for a Jan. 13 bankruptcy auction, with Toshiba Corp. in the role of lead bidder with an offer of $35 million.
Out of cash and out of inventory, OCZ is pushing for a fast sale to Toshiba to make something of a dent in its pile of debts, which is estimated at about $60 million.
Monday's bankruptcy filing is the final blow for shareholders, who watched the company's value plummet after revelations of a variety of accounting wrongs forced OCZ to restate its financial reports for the years from 2009 through 2012, and the start of 2013.
Stock that sold for nearly $10 per share at one point last year took a dive, and plunged into penny stock territory in recent weeks. Bankruptcy usually means shareholders are wiped out, unless all debts are covered, an outcome that does not appear likely in OCZ's case.
With financing hard to find, OCZ started looking for a buyer in the spring. Toshiba agreed to pick up the bulk of OCZ's assets to bolster its flash-memory storage business. The $35 million Toshiba is offering includes up to $23.5 million worth of bankruptcy financing, a lifeline from Toshiba to keep OCZ functioning during the fast sale process.
The Toshiba loan will be repaid as part of the sale, leaving only about $11.5 million to cover OCZ's debts. In early bankruptcy papers, OCZ reported more than $29 million in secured debt, and unsecured trade debt of about $31 million.
OCZ says it desperately needs the Chapter 11 loan, because lead lender Hercules Growth Technology Capital Inc. snatched all the cash out of OCZ's bank accounts Nov. 25, due to a loan default. With an "urgent need for cash," OCZ is looking at a Chapter 7 liquidating bankruptcy if the Toshiba loan is not approved, the company warned in court papers.
would revisit the shares in the low $2s
they wouldn't use cash for any acquisition given the great price apppreciation the shares have experienced - I already explained that the money will be solely to cover the ongoing giant cash burn the business suffers as they have failed to acquire any new business for a few quarters now (except for the Apple deal which is designed solely to Apple's advantage with GTAT taking on all the risk)
And they wouldn't be able to acquire Rubicon at all as this would require a very substantial premium to the current market price (an estimated 50 to 100%) which would mean further substantial dilution for GTAT shareholders.
It is smart to raise some money now given the inflated share price.
the company's strategy remains a miracle - their reverting back to the win/loss sharing agreements is becoming an even bigger disaster then the switch to to fixed commission model before
add the neverending Hongkong listing story and you know why the stock is trading close to multi-year lows.
Avoid under all circumstances.
actually the analysts will put pressure on the shares tomorrow, not the message boards
yeah - chapter 11 always means the final victory for brave shareholders - of course
don't know what you were looking at but today's press release tells a very different language. Sales growth actually came in much weaker than expected amidst weakness in domestic comparisons. And while franchisee sales looked good the international part of the business is still showing negative comps.
so this one will have a hard time tomorrow amidst cautious analyst commentary - should have better kept your short position
you should feel quiet lucky that the solar hype once again gave GTAT a huge and very much undeserved boost despite the company's business being in an absolute dismal state. All of the above posted is based on facts.
You can read about the buyback, the debt issuance, the late workforce realignment, the negative order intake, the sapphire order debookings and the low margin and highly risky Apple agreement on the internet. And of course management's improper optimism about the company's business in every earnings call until 2013.
hope you took at least some gains this time
*sigh* - I guess you won't believe me regardless what I am saying - so let's wait for the bankruptcy judge to approve the deal.
actually GTAT wouldn't profit from Apple using more sapphires as their margins are fixed at a very low rate - sure they might earn some additional revenues but given the margin profile this doesn't look very attractive. They should instead focus on selling their furnaces instead of operating own plants at poor margins.
that ill-fated buyback is just another indicator that management has been and still is acting short-sighted as they obviously didn't foresee the huge solar downturn despite being already in the midst of it in late 2011.
you guys obviously don't get it - OCZ has talked extensively to EVERY possible suitor and the Toshiba deal was the BEST possible outcome (in fact it is much better than I would have thought). So there WON'T be any other bidders in the pro forma bankruptcy auction. This deal is done. Your shares will end up being worthless. Accept it. Learn your lesson. Move on.
you truly must be joking - actually management was the last out of all solar related companies to admit to the dramatic business downturn. They wasted $100 mln in late 2011 for an ill-fated stock buyback which forced them to take on huge amounts of debt just nine months later. The waited six quarters to realign their workforce at least partly to the new order intake reality (negative). They didn't report positive order intake for a couple of quarters now. Despite most of their customers operating at full capacity again they failed to secure any orders so far. None of their highly touted new technologies is available to the market as of yet (and actually the market shows no need for them either)
So with the solar part of the business still languishing management turned to sapphire which proved to be an even bigger desaster with most of their once huge backlog now debooked amidst giant overcapacities in the market.
The recent Apple agreement isn't a sign of succes it was an act of desperation - with the traditional business being non-existent they had to look of other ways to generate revenues and cash. So instead of selling the furnaces for a great margin to one of Apple's contract manufacturers they are forced to take on all the risks of the transaction with Apple not even committing to any kind of purchases for lousy gross margins. Remember also that they will have to pay back the loan to Apple.
so what you call brilliant I call outright POOR management
the buyback was done two years ago at (at $7.67) - this might look ok now given the fact that today's share price is much higher but actually this is wrong.
In the aftermath of that share buyback the company ran into cash flow problems and needed to issue more than $200 mln in convertible debt at the end of 2012. So the potential dilution from the convertible debt looks even higher than the accretion from the 2011 buyback.
so why do you think the share price is down so much in after hours ? because you are the only one who got things right here ? or did you perhaps overlook the fact that Toshiba is just buying the assets and will leave shareholders like you with the debt...
so re-read the press release and think again...