Why OCZ Technology Keeps Soaring
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 solid-state drive specialist OCZ Technology (NAS: OCZ) are soaring again today by as much as 29% on continued speculation that it may be an acquisition target of larger rival Seagate Technology (NAS: STX) .
So what: Following up reports last week, new rumors out of The Register say that Seagate may be offering between $475 million and $550 million in cash, in addition to $450 million to $525 million in stock, bringing a total possible deal up to an approximate $1 billion valuation. That's a healthy premium even to today's high.
Now what: With all the consolidation taking place within the hard drive industry, this rumor has some serious legs to stand on. The Register even echoes the sentiments that Western Digital (NAS: WDC) and Micron Technology (NAS: MU) are both also interested in putting in an offer. OCZ has been putting up enviable growth lately, 54% to $113.6 million last quarter, and there's little doubt in anyone's mind that SSDs are the future.
Interested in more info on OCZ Technology? Add it to your watchlist byclicking here.
The article Why OCZ Technology Keeps Soaring originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Western Digital. The Motley Fool has adisclosure policy.
We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.