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


Computer storage and peripherals

Trailing-12-Month Revenue

$319.9 million


Founder/CEO Ryan Petersen
CFO Arthur Knapp

Return on Equity (average, past 3 years)



$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.

A few months ago, one of those Fools, All-Star DoubleAmerica, summed up the bear case for our community:

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.

If you want to retire rich, you need to protect your portfolio from any undue risk. Luckily, we've found another tech play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled this special free report for investors to uncover this stock today. It is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.