Speculation That IBM May Buy Stec

To read this article from Schaeffer’s Investment Research, Inc., click on:
Sizing Up Bullish Speculation on STEC, Inc., By the Numbers
Calls are flying across the tape at a fast and furious pace as buyout rumors swirl. STEC, Inc. has been attracting a lot of attention from call traders lately, thanks to speculation that IBM might soon launch a buyout bid for the company.

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If that happens, how will react EMC, the main OEM of Stec?

Up to now, the storage giant never invests into hardware components like tape or disk drives. If it changes its strategy, the battle with Big Blue could be ferocious and largely profitable for the investors of the SSD start-up.

On its side, Big Blue sold its HDD manufacturing some years ago to Hitachi but remains in storage components, producing tape drives.

And why not Seagate or WD to enter seriously into solid-state disks?

As the current market cap of Stec is $756 million, the price of the acquisition could surpass $1 billion.