This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Surviving OCZ: More Than a Hard Drive Crash

NEW YORK ( TheStreet) -- If you're a current OCZ (OCZ) investor, Tuesday's earnings release must have felt like your computer froze solid as you tried to save a document you spent all day working on.

The small miss and especially the guidance surely do not warrant the selloff on Wednesday. Look for bargains in the share price, but don't chase it.

OCZ Chart OCZ data by YCharts

OCZ has lost about 16% of its marketcap from Tuesday's close. The loss in share value is the result of earnings per share missing an expected loss of 12 cents to a dismal 17 cents per share. Revenue came in light as well at $113.6 million vs. the mean estimate of $115.7 million.

What truly captured Wall Street's attention is operating expenses. OCZ already was trading below the widely followed 200- and 90-day moving averages, adding fuel to the liquidation based on chart technicals.

The chart to watch for OCZ is the weekly chart. In the weekly chart, you can find support just above $4 and again at $5.15. Both these levels offer support and resistance. More importantly, both offer a history of reactions with price retracements that suggest OCZ will once again trade above $5.15 soon. The 200-day MA doesn't come into play on the weekly chart due to the relatively young age of the stock.

Revenue is a bright spot for OCZ. OCZ is computing at high speed with revenue hurtling over $110 million quarterly. That is an extension of 16% over last year. Management inculpated higher unit costs that squeezed margins. Based on sales it appears reasonable, and likely a short-lived obstacle.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
OCZ $0.00 0.00%
INTC $32.08 2.80%
WDC $83.02 1.07%
STX $46.20 3.03%
MU $18.22 3.70%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs