Something many on this board are missing the impact of is the yen
The yen has hammered the margins on this stock horribly. It is currently trading at a level that is unsustainable. What will eventually happen is that the yen will weaken faster than the dollar and we will see a significant increase in the margins when that happens.
This stock is becoming more of a currency play than anything else.
I probably comprehend US GAAP better than you do. What you fail to understand is that there is a significant amount of raw material purchased in yen that has to be exchanged. A strong yen means higher costs. I worked for an international company that had to deal with exchange rate issues all the time.
For the idiot that is talking about Apple, they make their stuff in CHINA (foxwoods). China uses the YUAN.
Management has mentioned time and time again that the yen has had an impact on margins due to the weakness of the yen. If the yen were to get off these historical lows in the mid 70's and get back to something between 90 and 100, you would see a significant improvement in margins from that alone.
I believe that improving margins and the falling yen will boost the stock in the latter half of the year. As we get closer to the inflection point in sales of SSD's that Sanjay repeatedly mentioned in the CC we should see new highs in the stock price.
BTW, I did the Fib Retracement and the 38% support line is 45.44. The 50% support line is 42.92.
If you believe that rubbish, load up on apple who would be a huge china play and actually improved margins...
SNDK has excess inventory. FIFO accounting and that means their margins will drop more tremendously irregardless as to exchange rates. FIFO is the key and excessive inventories at their buyers means nothing but worse margin. 5 consecutively lower margins should never have happened and it's only going to get worse....
you really don't have a clue with your spewing something that sounds intelligent if it was really applicable....