Violin Memory: Will It Always Remain Weak?
The recent IPO of flash-storage provider Violin Memory (NYSE: VMEM ) failed to impress the market due to several persistent issues including an auditors going concern doubt. The IPO process can be very volatile and investors need to look no further than the Facebook IPO to see how a disappointing market reaction can quickly turn around.
The major problem with Violin Memory was the shocking level of losses. The company lost so much money over the last six months that it likely had to raise money. Another factor in the recent pricing weakness has been the horrible market trading of other flash-storage providers Fusion-io (NYSE: FIO ) and OCZ Technology (NASDAQ: OCZ ) . Does the recent weakness provide a buying opportunity for patient long-term investors?
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