Anybody following OCZ Tech (OCZ) knows that rumors have been swirling that Seagate Tech (STX) has made a bid to buy the company for over $1B. Well the rumors suggested that the deal would be announced on Monday during the Q212 earnings report for Seagate.
After the close on Monday, Seagate reported disappointing numbers that sent its stock down some 8%. Unfortunately though for OCZ shareholders no mention was made of the OCZ buyout. Not even a question from analysts regarding the rumors.
Not to much of a surprise but the stock plummeted during the regular session and even further after hours. Closing at $5.36 most of the rumor gains were gone.
Then the story gets strange. While the CEO was busy claiming no real need for buying technology, the CFO trots out late and tells Reuters the desire to purchase a SSD company. Within a span of hours, the company appears happy with the in-house program to suddenly needing external sources.
Heck, even Piper Jaffray came out after the conference call and claimed that the deal wasn't imminent. Piper at least backed up the stock and placed a $13 target on the stock.
The interesting part was that Bright Side News Theo Valich hit twitter with claims that the deal was still it the works. Based on the statements from the CEO of Seagate that appeared really implausible. Sure enough though the CFO statements hit the wires when after hours trading closed.
Where will the stock of OCZ trade tomorrow? Was the CEO of Seagate just posturing on the conference call in order to get a better price? What would Piper Jaffray have said with those CFO comments in hand? And why wasn't the Piper analyst on the Seagate call to clarify that issue?
Considering the CFO comments tend to back up Theo's claims, OCZ should at least recoup the loses and possibly trade back up into the $8s tomorrow. The plot definitely thickens for tomorrow as the saga continues.
Note: Due to the late hour, no time to link all the articles.
Disclosure: Long OCZ. Please review the disclaimer page for more details.