OCZ Technology Group (OCZ) dropped 40.32% after the company delayed filing its second quarter report, reported lower revenue, and expected a significant net loss. Operating briefly without a CEO, the company announced that Ralph Schmitt would be the new president and CEO. OCZ originally forecast reduced revenue of $130 to $140 million for the quarter.
OCZ closed recently at $1.88, a new 52-week low. It is a stock investor's greatest fear. STEC (STEC) also fell after OCZ provided its downbeat forecast.
There are some positive developments. OCZ has a joint development with Marvell (MRVL) for a PCI-E platform for software caching functions. OCZ could focus on higher-end products, which would improve margins. Yet, the market is responding differently as the company guides lower. Lower guidance from OCZ illustrates the company is having a difficult time selling its products effectively in the enterprise space. Samsung is well-versed in this space.
Business Section: Investing Ideas
1. SanDisk Corp. (SNDK, Earnings, Analysts, Financials): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap at $10.28B, most recent closing price at $42.56. Solid State Drives (“SSD”) are growing in demand. SanDisk, which better-managed its NAND supply is positioned to benefit as SSD’s demand grows.
Traditional hard-drive manufacturers are still generating strong profits and high margins even as SSD demand is growing:
2. Western Digital Corp. (WDC, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and sale of hard drives worldwide. Market cap at $8.92B, most recent closing price at $36.37.
3. Seagate Technology PLC (STX, Earnings, Analysts, Financials): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Market cap at $11.07B, most recent closing price at $28.23.
Pure-play semiconductors include:
4. Marvell Technology Group Ltd. (MRVL, Earnings, Analysts, Financials): Designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Market cap at $4.92B, most recent closing price at $8.82. Shares broke a 52-week low on October 10.
5. Micron Technology Inc. (MU, Earnings, Analysts, Financials): Engages in the manufacture and marketing of semiconductor devices worldwide. Market cap at $5.86B, most recent closing price at $5.76. An analyst day hosted by Micron will be held October 12, 2012.
To interact and discuss these picks with users, attach your watch list or portfolio to your friends on Kapitall. Message the author. He is ranked sixth (by points) on the all-time leaderboard. The leaderboard is located on your score icon -> Leaderboard. Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed for goods at the Kapitall store.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- SanDisk Corp. (SNDK, Chart, Download SEC Filings)
- Western Digital Corp. (WDC, Chart, Download SEC Filings)
- Seagate Technology PLC (STX, Chart, Download SEC Filings)
- Marvell Technology Group Ltd. (MRVL, Chart, Download SEC Filings)
- Micron Technology Inc. (MU, Chart, Download SEC Filings)
New to Kapitall?
1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter