Huge Positive Close For OCZ Tech
Management had previously hinted that if the company needed to raise cash it would be due to significant orders that required more cash for operations. Absent any big deal announcement since the secondary, it appears that investors have become disenchanted with this story.
Analysts expect the company to have wrapped up nearly 100% revenue growth for FY'12 and follow that up with a 35% revenue growth for FY'13. The stock currently trades at a 13 forward PE though the 5 year growth rate is over 22%. That number even appears low considering the growth rate.
On the technicals, the stock closed right around the 200ma. Being so oversold, the stock is due for a rebound. The question remains whether this flash storage provider will soar or fade away.
Disclosure: Long OCZ. Please review the disclaimer page for more details.