You said:
"Let the management manage their business to maximize our long term profits and the stock will take care of itself."
Well, if management just concentrates in managing the business, then the CEO just needs to report the earnings and that's it, he doesn't have to open his BIG MOUTH and issue his unwarranteed warnings.
The rule of stock play is like this: if you expect great earnings, you hang in there and the stock may pop up a few points after earnings (just like CHKPF did on the same day SNDK reported earnings). Then if the stock is ahead of itself then you sell all or partially to take your profit. But then this CEO came out from the blue and with his big mouth, issued warnings. The stock took a nose dive to $33 even before it opened. Yesterday, it went as low as 26 something before recovering to 30ish. So this big mouth CEO screw up the market and how am I suppose to know the rule of the game now? I am lucky to buy at 27 and so I am able to hang in there and wait, but how about people who bought in the high 30s, people who bought the stock on margin, people who play options, ... If people get hurt, they will stay away from this stock next time around. My point is this BIG MOUTH CEO makes the stock game unpredictable.
You said: " I imagine there is some inventory overhang, but it seems like the next quarter will be substantially more than "flat"
Agree with you on the bright future of the company. So do you agree that the warnings from this BIG MOUTH CEO is unecessary? I don't worry too much about the secondary. This is a well managed company and they will use the money from the secondary wisely to produce more income, therefore the dillution will be taken care of. But the CEO better keeps his big mouth in check, or the company will have to issue even more shares to get the money they want. We have already lost 25% of the value of the stock with the statement from the CEO. Let say the company plans to issue 2M shares, with a $10 dip in the stock, that's 20M lost just because of the CEO's big mouth. The total revenue of the company was 36M something for this quarter, so 20M loss represents 55% of the revenue!!! Man, the sales department will have to work like hell to make up for the loss in stock value.
Here are the phone numbers again for people to call the company and SCREAM:
CFO Cindy Burgdorf Ph: 408-542-0577
Company Phone: 408-542-0500 (ask for Mr Eli, the CEO)
Fax: 408-542-0503
E-mail: investor_relations@sandisk.com
I already called the company and opened my BIG MOUTH. Now is your turn. |
