Jim Makos | Jul 30, 2012 03:29AM ET
Rumors say that Seagate (STX) might provide a surprise with today’s Q4 2012 earnings report by announcing the acquisition of OCZ. Speculation about Seagate matching with OCZ has been around for quite few weeks and there is no better time to surprise the market other than the earnings season! Seagate consensus EPS of the 4th fiscal quarter is the highest ever predicted by analysts at $2.51. Seagate beat the estimates 3 months ago regarding the Q3 2012 earnings report, when they reported $2.64 earnings per share compared to $2.11 estimate. The rumors of OZC acquisition has also boosted OCZ stock price but I’m much more interested in the Fibonacci retracement of STX stock found at the monthly chart!
Technical Analysis: Seagate Stock
Seagate stock price has confirmed the 61.8% Fibonacci retracement level in 2010 and 2011 and the breakout above the resistance level of $21 was another proof of the long term uptrend that is developing. Thailand floods have affected many stocks of companies manufacturing hard disks in 2011. The past weeks though many of those companies reported their latest financial data and their shares skyrocketed, like the 30% surge of Western Digital. OCZ stock also printed new 3-month highs on Friday, although that was due to the acquisition speculation. OCZ earnings report back on July 10th wasn’t exactly the ideal one.
Disclosure: No positions at time of writing.
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