By
Evan Niu
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More Articles
July 27, 2012
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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solid-state drive specialist OCZ Technology (Nasdaq: OCZ ) are soaring again today by as much as 29% on continued speculation that it may be an acquisition target of larger rival Seagate Technology (Nasdaq: STX ) .
So what: Following up reports last week, new rumors out of The Register say that Seagate may be offering between $475 million and $550 million in cash, in addition to $450 million to $525 million in stock, bringing a total possible deal up to an approximate $1 billion valuation. That's a healthy premium even to today's high.
Now what: With all the consolidation taking place within the hard drive industry, this rumor has some serious legs to stand on. The Register even echoes the sentiments that Western Digital (Nasdaq: WDC ) and Micron Technology (Nasdaq: MU ) are both also interested in putting in an offer. OCZ has been putting up enviable growth lately, 54% to $113.6 million last quarter, and there's little doubt in anyone's mind that SSDs are the future.
Interested in more info on OCZ Technology? Add it to your watchlist by clicking here.
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