OCZ’s [NASDAQ (we're not sure for how long):OCZ] stock took another, likely finishing blow on the markets today, with an astonishing 41% erosion of the share price on top of the 33% that had happened only the day before. At this current rate of the share’s value, one has to wonder what the heck has been going on with the investors that hold the stock and how much of this is real. Truly, OCZ is not worth the $30 million that it’s current stock is valued at with the share price at $0.43 after close and AH trading had ended.
I believe that OCZ could easily be worth more than $30 million, but now that they’ve basically been forced down to that valuation by investors, they suddenly become an attractive take-over target by virtually anyone. Remember, they’ve got a significant amount of IP with their acquisitions of companies like Indilinx, PLX and Sanrad. The IP alone is worth millions, not to mention the OCZ brand name and their distribution channels.
I believe that a SanDisk, Samsung, Toshiba or even a Seagate or Western Digital could benefit from acquiring the brand and associated IP and engineers. Clearly OCZ had issues being profitable, but it doesn’t mean that their products were necessarily bad. If any of the above companies decides that $30 million is the right price for OCZ, we could see some rumors pop up once again and drive the share price up. That’s the problem with OCZ’s stock, it is far too sensitive to rumors and share price manipulation. At this point, the best thing that could happen to the company is an acquisition and removal from the NASDAQ, it would be best for the employees and their customers as well as distributors.
It is really sad to see OCZ go, but I just don’t see the company coming back from this deep of a hole. It’s merely a matter of time until they’re delisted from the NASDAQ for being a penny stock. At $0.43 the stock would have to grow more than 100% in order to even come close to being above $1.00 a share once again.