Don't Get Too Excited About Violin Memory's Pop... Yet

Shareholders of high-speed data storage specialist Violin Memory must be feeling pretty good right about now.

To be sure, the stock jumped 22% immediately following Violin's ouster of CEO Donald Basile on Monday. Then yesterday, shares surged another 14% after the company provided an encouraging business update and news broke that activist investor Clinton Group is urging Violin's board to sell the business.

All told, Violin Memory stock is up nearly 50% since Monday.

However, according to Fool contributor Steve Symington in the following video, there are a number of reasons investors should consider holding off on owning Violin Memory stock for now.

After all, regardless of who's at the helm and given Violin's extraordinarily bad earnings report and forward guidance last month, Steve thinks the company -- and its investors -- could be in for more pain before its situation starts to improve.

Check out the video below to get Steve's full take, then feel free to weigh in and let us know whether you think Violin Memory is still too risky to buy.

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The article Don't Get Too Excited About Violin Memory's Pop... Yet originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 Motley Fool has a disclosure policy.

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