Better be careful. The news from INTC is bad for SNDK as aNajarians pointed out that Intel said its flash-memory business has been a negative. The competition is too high, he said. This means you should stay away from Micron (MU - Cramer's Take - Stockpickr) and Sandisk (SNDK - Cramer's Take - Stockpickr), he said.
Funny how INTC earnings props this up when in fact, this was the worst news possible for SNDK and should give you a hint what's gonna happen in their earnings. This pop is a good opportunity to short it. Don't want to be too much of a gambler and buy the april 27.50's but i did load up on the may 25's.
What he doesn`t understand is that Sandisk and their joint venture with Toshiba have the lowest costs in the industry and are causing Intel and their joint partner Micron to lose money. This is why Intel will most likely choose to divest, its much cheaper to procure supply as needed for their SSDs from the Sandisk and Toshiba fab instead. It works for Apple.
Thank you. No one on this board or on the Street understands SNDK's business model. As the price goes down it opens up more markets to sell more memory. Yes there margins go down but they can make up for it in volume and royalties. They are the only company that can afford to do it. The company is out to be the best, low cost producer of flash memory with a large retail channel and presence. They are not out for short term stock gains. The weak hands are being shaken out and SNDK will be the winner. Once people figure this out and realize the value of its IP portfolio the stock price will reflect its true value. Those that look at this stock as a commodity, or just a semi have no clue about the company's business model and should day trade the stock or stay away from it.