Thursday, September 6, 2012

OCZ Technology: Another Supply Warning As Demand Surges

As chronicled a few weeks back, OCZ Technology Group Inc (OCZ) is one of the most drama-ridden stocks in the market. The stock has been whipped around by numerous buyout rumors and a wild pattern of high growth followed by disappointing earnings. After the close on Wednesday, the company again reported disappointing preliminary revenue numbers, even as demand soars.

That was the bad news and likely what the market will focus on, with the stock trading down 20% in the after-markets. The good news that the market will ignore is that the guidance miss is due to the lack of NAND supply from third party suppliers. Bookings again exceeded expectations and that should ultimately guide the stock price.

The shortage of NAND appears related to Apple (AAPL) buying up all available supplies for either the iPad-Mini or the iPhone5. This caused suppliers to cut capacity for the 2xnm MLC NAND used in the Vertex and Agility line of products.

Read the full article at Seeking Alpha.


Disclosure: Long OCZ and AAPL. Please review the disclaimer page for more details. 



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