STEC Rallying On Acquisition Speculations

STEC Inc (NASDAQ: STEC) shares have moved up 2.40% to $17.05, marking an upward movement for over 11 consecutive days. At present, STEC’s shares are witnessing heavy call buying. The rally started when STEC’s stock received a “buy” rating from Broadpoint Amtech analyst Dinesh Moorjani after he noted that the shares were down drastically from their highs earlier in the year. STEC shares were being pulled down on concerns surrounding intensifying competition in the enterprise SSD market.

According to analyst Gordon Johnson of Hapolaim Securities, STEC’s shares are being boosted by takeover speculations. He does not believe, however, that acquisition is on the cards.

STEC is one of stocks that are being favored by James Altucher for 2010.