Why OCZ Technology Keeps Soaring
Jul 27th 2012 3:35PM
Updated Jul 27th 2012 3:40PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solid-state drive specialist OCZ Technology (NAS: OCZ) are soaring again today by as much as 29% on continued speculation that it may be an acquisition target of larger rival Seagate Technology (NAS: STX) .
So what: Following up reports last week, new rumors out of The Register say that Seagate may be offering between $475 million and $550 million in cash, in addition to $450 million to $525 million in stock, bringing a total possible deal up to an approximate $1 billion valuation. That's a healthy premium even to today's high.
Now what: With all the consolidation taking place within the hard drive industry, this rumor has some serious legs to stand on. The Register even echoes the sentiments that Western Digital (NAS: WDC) and Micron Technology (NAS: MU) are both also interested in putting in an offer. OCZ has been putting up enviable growth lately, 54% to $113.6 million last quarter, and there's little doubt in anyone's mind that SSDs are the future.
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The article Why OCZ Technology Keeps Soaring originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Western Digital. The Motley Fool has a disclosure policy.
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