CEO Comments Light a Fire Under Beaten-Up OCZ Technology (OCZ)

November 29, 2012 10:26 AM EST
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Shorts in OCZ Technology (NASDAQ: OCZ) are running for cover Thursday as rumors of the company's demise may have been greatly exaggerated.

Shares of the embattled SSD maker are up 30 percent in early going after the CEO told Reuters it is "back on track" and said the company is always open to exploring strategic alternatives.

"Recently we haven't had any significant NAND supply issues, mostly because we diversified ourselves to multiple suppliers. That was part of the issue before. We were overly reliant on one supplier," Ralph Schmitt who was named CEO in October told Reuters.

On a potential sale, the CEO said: "(A) sale is a strategic alternative. But right now that's not the direction we are heading towards because we believe the valuation of the company today should be higher even if based on the pure assets of the company."

Recent rumors had Seagate (NYSE: STX) buying the company, although shares are at much lower levels now after an October 10th revenue warning sent the stock down 40 percent.

Shares are up 28 percent to $1.73 in early trading, although they are still off 83 percent from 52-week highs.

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