I was checking the stocks that soared on Friday, and I discovered a very interesting stock, NZ. Netezza closed at $20 in the after hours, up $5.08 from Thursday (about 34% higher) on 14 X the average volume.

What is this company and why did this happen?

Netezza produces data warehousing appliances, essentially providing a hardware storage with a built-in database and an application built on top of that database to facilitate storage. It does seem to allow ad-hoc reporting. Netezza has around 325 customers, including mega government agencies.

Of course, what Netezza provides is not nuclear science, and it’s been done by other companies.

This happened because Netezza announced better than expected financial results on Thursday afternoon, after the market closed, but in my opinion, the market overreacted, and the stock is way overvalued. The EPS was 0.09 cents, which makes the Netezza’s P/E over the 220 mark (this is one strong P/E!)

Netezza’s business can be classified in the same category of 3 PAR (PAR has quadrupled in price so far), so maybe investors are looking for another in the current M&A gold rush? And at a market capitalization of only $1.23 billion, Netezza might seem very cheap for a large company in need for its technology.

I would never ever buy this stock… Nor should anyone with his right mind, unless, of course, you’re someone who knows stuff before others do, and can make much more informed decisions than the rest of us.