Copperfield Research Discloses Another Potential Stock Scam, This Time Fully Domestic: OCZ Technology Group
And now for a little variety from the now daily Chinese fraud exposes. Copperfield Research, in taking a break from the spate of unmasking of locally listed reverse merger frauds which how now locked up the Nasdaq halt list, has decided to focus on some potential home grown fraud, exposing what it believes is some local fraud in the form of Nasdaq-listed OCZ Technology Group. From the just released report: "OCZ has parlayed investor and market excitement for solid state drives (SSDs) into an amazing story. From a low of $1.79 last summer, OCZ's stock has steadily climbed more than 350% on a feel good tale told by its CEO. But there is a much darker and sinister side that has been well hidden. It is our opinion that OCZ has misrepresented its SSD growth and has financial irregularities that are nearly impossible to reconcile. We believe that some form of a restatement may be required and that the auditors tick and tie review has some substantial inconsistencies. As such, we have sent our findings to the Securities and Exchange Commission asking for clarification on the multiple sets of numbers that we have uncovered. We believe OCZ's Board has the fiduciary responsibility to form a special committee to examine these discrepancies." The bottom line for those curious where this short-seller sees the stock: "If OCZ trades in-line with the comp group, a generous assumption given OCZ's limited asset value, differentiation, and minimal profitability, a reasonable price target would be between $2.58 and $4.98 per share."
Full Copperfield Research report:
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