OCZ Technology Group's Shares Plunged: What You Need to Know
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 severely sibilant solid-state storage specialist OCZ Technology Group (NAS: OCZ) plunged as much as 16.6% in spiky trading.
So what: SSD stocks are falling all over the place because tech giant Apple (NAS: AAPL) is reportedly buying a company in the sector. Israel-based Anobit makes controller chips for high-performance Flash memory solutions, so an Apple buy could shut SSD parts suppliers such as CZ, STEC (NAS: STEC) , and SanDisk (NAS: SNDK) out of one of the world's most attractive storage accounts.
Now what: All the SSD stocks I've mentioned underperformed the market today, largely in proportion to how heavily shorted each stock is. OCZ fell the hardest because it's under more investor pressure -- with a gobsmacking 43% of the float sold short, there are plenty of nervous shareholders out there.
I wouldn't panic about this development. Apple is a big tuna but there's plenty of fish in the SSD sea.
Interested in more info about OCZ? Add it to My Watchlist.
At the time this article was published Fool contributorAnders Bylundholds no position in any of the companies mentioned. The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check outAnders' holdings and bio, or follow him onTwitterandGoogle+. We have adisclosure policy.