2-Star Stocks Poised to Plunge: OCZ Technology?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solid-state drive specialist OCZ Technology (NAS: OCZ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at OCZ's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Jose, Calif. (2002)|
|Market Cap||$426.8 million|
|Industry||Computer storage and peripherals|
|Trailing-12-Month Revenue||$319.9 million|
|Management||Founder/CEO Ryan Petersen|
CFO Arthur Knapp
|Return on Equity (average, past 3 years)||(80.2%)|
|Cash/Debt||$38.6 million / $22.7 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 8% of the 117 members who have rated OCZ believe the stock will underperform the S&P 500 going forward.
Although there may be a short squeeze here to drive the price up, this company is destined to fail. ... SSDs may be the future but OCZ's low-end products will not hold up to competition who can invest significantly in R&D, while OCZ fails to make money now and has no hope if more R&D expenditures are needed. It will take time to sort out what SSD players will provide useful products for the everyday consumer, but I assure you OCZ will not be one of them.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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