Today's news on the closing of the secondary and the exercise of over-allotments shouldn't be that big of a deal, but the stock is down 5.5% now. Hard to tell the reason for the selloff other than maybe the over-allotment was partially exercised.
This is possibly seen as a negative in the market though I don't see this move as surprising. The secondary was for $9 and the stock is selling below those levels. Why take that deal when the open market is cheaper?
OCZ Tech (OCZ) remains a leading provider of high-performance solid state drives (SSDs) for computing devices and systems that remains in very high demand. The company will presumably use these funds to land a very large customer though the company has yet to verify or deny.
That might also be the cause of the selloff. Traders might be fleeing the stock considering the secondary has been closed and the speculated major deal has not been announced.
Sure appears like a buy the dip scenario though our models are already loaded on this stock.
Disclosure: Long OCZ. Please review disclaimer page for more details.