OCZ stock falling faster than Felix Baumgartner, down to $1.46

It's not exactly a pretty scene over at OCZ Technology Group Inc right now as their stock continues to plunge towards being worthless. On Wednesday morning, the stock plunged a massive 42 percent to $1.88, down from a close of $3.15 the day prior. Today, the stock has taken another dive, though not quite as large.

At the beginning of today's trading, OCZ's stock was valued at $1.84. It has now dived nearly 22 percent to $1.46, at the time of writing. But why is OCZ's stock in the toilet all of a sudden? Well, it stems from OCZ delaying the filing of its financial results for the second quarter for fiscal year 2013.

In the press release detailing the delay, OCZ warned investors that the second quarter revenue would be "materially lower" than the guidance released on September 5, 2012. This decrease is blamed upon "the impact of customer incentive programs." The company now expects to report a "significant net loss."

How come nobody saw this coming? Well, some did. If you look to the previous quarter, OCZ claimed they were making 30 percent margins, though there was basically no way this was possible, considering they were selling drives much cheaper than the competition when all rebates and customer incentives were factored in.

It's thought that the reason they would do something like this is to gain market share so that they would look good to a potential buyer. Previously this year, there had been rumors of an acquisition which focused on Seagate purchasing OCZ. It's a good guess that once Seagate took a look at OCZ's books, the deal fell through.

If OCZ goes completely under, it will have some wide-reaching implications on the technology sector. For one, many review sites who rely on advertising revenue from OCZ will no longer get it. Take a look around--you'll be hard-pressed to find a site that doesn't feature an OCZ banner, some of which only feature OCZ banners.

Furthermore, they are one of the larger fab-less SSD manufacturers in the market right now. If the SSD market loses them, our Storage Editor, Chris Ramseyer, is predicting a quicker take over by SSD manufacturers that have fabs, such as Intel, SanDisk, Toshiba, Micron, and Samsung.

If OCZ's stock continues falling at the rate it has been, they'll quickly become worthless to the point where they could be purchased with the quarters in your car's ashtray.

The situation will also not be helped by the fact that several different legal firms are planning or already have filed lawsuits against OCZ for possible intentional misleading statements by the CEO and CFO, which would have them violating the Securities Exchange Act of 1934 and possible other federal securities laws.

The CEO that lead during these troublesome quarters has already resigned and been replaced, as we covered yesterday. The CFO was supposed to be retiring, but has agreed to stay on for a little while longer so as to help smooth the transition to the new CEO.

We'll be sure to keep you up-to-date on the latest happenings over at OCZ Technology.