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Flash Drive Maker STEC Jumps on Projected Deal With Computer Maker

Shares of Santa Ana’s STEC Inc., a maker of flash memory drives for industrial uses, jumped Monday after an analyst upgraded the stock.

STEC’s stock closed up nearly 12% on a recent market value of about $455 million.

A handful of analysts commented on the possibility of STEC scoring big contracts to sell flash memory drives to big makers of servers, according to an Associated Press report.

STEC makes what industry insiders refer to as “solid state” drives, because they have no moving parts and are typically smaller, more durable and require less electricity.

Solid state drives are replacing disk drives,which have spinning disks called platters, a needle-like reader and other chips and connecting parts,in many consumer devices.

They’re also making inroads among computer makers.

Lazard Capital Markets analyst Daniel Amir said STEC is set to sell solid state drives to a big PC maker, most likely Apple Inc., Hewlett-Packard Co. or Dell Inc., the report showed.

Amir described it as a “a significant milestone for the company.”

B. Riley & Co analyst Salomon Kamalodine also upgraded the stock from “neutral” to “buy” on Monday.

STEC is set to report first quarter results on May 5.

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