STEC, Inc. (NASDAQ:STEC)
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The Company designs, develops, manufactures and markets custom memory solutions based on Flash memory and Dynamic Random Access Memory technologies.
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The Company designs, develops, manufactures and markets custom memory solutions based on Flash memory and Dynamic Random Access Memory technologies.
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STEC, INC probably has a better chance of dropping further from $6.80 than going up. The losses continue to mount and the realization that STEC blew it at the "enterprise level" is fully established. Playing in the Enterprise space has dangers that were poorly anticipated with long expensive qual cycles, churn of technology, inventory levels that may become excessive as "big bad" Enterprise players expect you to carry the forcast risk, followed by new technology challenges as competitors catch up. STEC indicates they will diversify into OEM (standard markets) and expand products to include new PCI based drives. This could take time to manage, if ever. I'll put in a weak upthumb here after the selloff since volume 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.