$60 short term the selling the last few weeks was overdone. You have fund managers that need to put money to work. Do you buy a retailer that's kicking ass or do you buy the one's that are struggling. A sure sign of this sectors upward strength is that they preformed better than expected during hard times. Almost all other have struggled. Like I stated yesterday the VG sector runs on it's own cycle. Check how these companies did during the recession, if we are in or go into one. It comes down to where there are in there cycle. This is what's called early in the sweet spot. This will be possible the best preforming company in retail and VG sector over the next year.
<<<Aside from that happening, a large flash medium could send SNDK to the $40's>>> Exactly.
First to the market in an Apple product has to spur some upside. SNDK introduced laptop drive with a 72 GB capacity at CES. It just seem all to coincidental.
That's exactly what I've been thinking as well. I've been looking at some option plays. My only concern is how long before another flash company releases the same thing. Aside from that happening, a large flash medium could send SNDK to the $40's. I haven't bought a hard drive camcorder because hard drives fail too easily. I've been waiting for a 30-50GB flash camcorder and it looks like the wait wil be ending. I see a huge mkt for flash drives as they replace hard drives in DVR's, cameras, computers, etc. SNDK should be well positioned for that. "IMO"
Not to talk about another stock but SNDK could have a big bounce next week if Apple announces a Ultra light/ thin laptop at MacWorld. SNDK introduced a storage device that would go perfectly with this product Apple gets most, if not all, of its flash from SNDK. Just something to ponder.
I know it's a dead momentum name from the past but this could bounce if the momentum crowd gets behind it and the shorts are forced to cover. Could see 34-36 by next Friday.
Personally after the news the last week and 1/2 I think Monday. They have to make a point of showing that they're concerned with the falling growth in the USA and put the inflation card back in the pocket. The slow down in itself could keep inflation in check to an extent. Now if we have stagflation that's another story.
just to play devils advocate. Do you buy a stock priced to perfection, or one priced as if the world is going to end. JCP, WMT, TGT, HD, LOw have all been taken to the woodshed. Would it be less risky to buy those then one that has been priced to perfection?
You buy strength. Most of those other companies will struggle even more if we head into a full blown recession. You could maybe bottom fish in a name like JCP if you're looking out over a year. That name IMHO is oversold but I'm not a buyer in JCP, yet. Fund mangers need to be invested they will buy and overweight the names putting up the numbers. The VG sector has always had it's own cycle. Yes the hard times will limit a massive upside move but you want to be in companies that exhibit strength.
20% growth going into the sweet spot of a cycle and at 1.25X's sales and a forward PE in the low 20's isn't really a stock priced for perfection.