this company is in trouble, its not a steal here. what proof do you have to prove its a BUY and not a SELL.
the company has sold the investors up the river, look at the stock ever since the announcement of the financing, The financing on teh surface looks ok, but its the details you the average person do not see, something went bad, the stock has dropped fro 45, to 38 and will continue to sell off till we see 20
So, we're supposed to believe that last month they couldn't ship enough product out the door and this month they don't know what to do with all the extra product hanging around?
It just makes absolutely no sense whatsoever.
ASP's need to come down 20% in the intermediate term because (a) they have held steady now for about a year (b) SNDK is bringing on the next node this fall and they are going to see 30% cost reductions anyway and c) because it is GOOD for the industry to get price per gbyte at or below $1 FIRST in order to drive demand for the added capacity coming out of the Fab 5.
And so what if the consumer is pulling in his horns a bit. SNDK's business is almost all OEM now. And those purchases are subsidized by the phone companies.
This is a classic bear raid IMHO. Eli et al, who are absolutely tone deaf when it comes to The Street, waved the white flag when they did that financing deal and the bears are just killing this thing.