4-Star Stocks Poised to Pop: STEC

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solid-state storage device specialist STEC (Nasdaq: STEC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at STEC's business and see what CAPS investors are saying about the stock right now.

STEC facts

Headquarters (founded) Santa Ana, Calif. (1990)
Market Cap $320.7 million
Industry Data storage devices
Trailing-12-Month Revenue $263.5 million
Management Co-Founder/Chairman/CEO Manouch Moshayedi
Co-Founder/President/COO Mark Moshayedi
Return on Equity (average, past 3 years) 5.6%
Cash/Debt $205.8 million / $0
Competitors Micron Technology
SanDisk
Western Digital

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 742 members who have rated STEC believe the stock will outperform the S&P 500 going forward.   

Just yesterday, one of those Fools, All-Star TSIF, tapped STEC as a possible takeover target:

[V]olume and float are fairly low and STEC fills a niche that might be of interest to other players. I sense management is "tired" and if another player is interested the premium might not be excessive. Overall, one should NEVER bank on a buyout option, but it may present some resistance to further share price erosion in the the short run.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, STEC may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Western Digital. Try any of our Foolish newsletter services free for 30 days

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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  • Report this Comment On August 09, 2012, at 9:59 AM, felicitysdad wrote:

    Really ?? 50% sales decline over last

    year ?

    $49 million in sales and a $40 million

    dollar loss ...

    This one is going NO where !

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