It is tempting to take some money off the table at this point, but it goes against my priniciple of keeping SanDisk as a hearty perennial in my investment garden...
If we only had tomorrow's newspaper today...
I sold 15% of my SNDK (which I only bought seven months ago) 10 days ago at what I thought was a high price, 78. I am sooo tempted to sell more here, but I suspect that these are the same thoughts that the early owners of INTC, MSFT, DELL, etc. had when their stocks had an unbelievable run.
Were these gorilla stocks overvalued then? Certainly. But the money kept piling in, because the stockholders knew that their companies were going to dominate their segments, and that the segments' growth was going to be explosive.
For the life of me, I can't justify SNDK's current value. But this isn't an internet stock with the company losing money, no barriers to entry, and hype, hype, and more hype. You actually rarely even see SNDK mentioned in the media. As far as I know, the only upgrade was a couple of months ago by Merrill. The stock isn't even volatile. (I admit it can swing 10% in a day, but the chart has been straight up, no breaths, and it hasn't been up 50% down 25, up 45%, down 20.)
The more I think about it, the more sense it makes that a bunch of very smart people know that SNDK holds the keys to what is going to be a dominant and ubiquitous technology. They are getting in at prices now that a couple of years hence will look laughably cheap.
FWIW,
Jay |
