Background: OCZ Technology is engaged in the design, manufacturing, and distribution of Solid State Drives (SSDs) and computer components. SSD is a disruptive, game-changing technology that is a substitute to traditional rotating magnetic hard disk drives (HDDs). SSDs are faster, generate less heat and use significantly less power than the HDDs.
In addition to its SSD and Memory Module product lines, the company designs, develops, manufactures and distributes other high performance components for computing devices and systems, including thermal management solutions, AC/DC switching PSUs and computer gaming solutions. The company was founded in 2002 and is headquartered in San Jose, Calif. OCZ Technology trades an average of 5.1 million shares per day with a market cap of $230 million.
52-Week Range: $3.03 to $10.05
Investors aren't expecting an improvement in earnings this time at bat. Analysts forecast per share results below last year in the same quarter. A loss of 18 cents is expected after the market closes on Wednesday. During the matching period in the previous year, OCZ lost "only" 14 cents per share.
I want to say that a surprise beat will explosively send shares higher; while true, I don't have a high level of confidence it will happen. If OCZ is able to at least meet estimates it will be a victory. Look for, or at least be prepared for, a miss.
Last quarter OCZ's earnings were released on July 10 and the previous closing price was $5.45. Relative to a current price of $3.40, shares are down 37.6%.
Five out of eight analysts rate OCZ a hold, two recommend this as a buy and one recommends selling. The average analyst target price for OCZ is $6.05.
There is no other way to describe the chart pattern than train wreck. After trading oversold in late May, OCZ bounced back to briefly (three days) test the 200-day moving average. Needless to say, OCZ didn't receive a passing grade.
In the last month, the stock has really taken a turn for the worse. Shares have crumbled 39.7% in the last month of trading.
Last quarter OCZ's earnings were released on July 10, and the previous closing price was $5.45. Relative to a current price of $3.40, shares are down 37.6%.
The short interest says a lot. I know I write it a lot, but it needs to be repeated: Short-sellers are regarded as the smart money. The short interest is altitudinous and is a strong warning that short-sellers expect the share price to fall considerably. The short interest is 41.4%. When a stock is under $5, and the shorts are still not letting go, it's like a robot yelling "danger Will Robinson, danger"