First of all, if the new 3D technology uses any magneto optical technology, it probably requires moving parts. Moving parts consume more power than solid state devices. Even though a 3D memory system might have greater capacity, what is the point of that when you're looking at digital photography for typical consumer applications (as opposed to professional studio work) or the supply of memory modules for cell phones, music players, palm computers, etc.?
Second, in response to the previous message on the price of SNDK shares, one cannot look solely at business prospects for the company (though that would be nice!). One also has to look at the overall performance of the market for tech stocks as well as stocks in general. Right now, given the recent economic data on new job creation, cost of employment, and other factors, a growing number of analysts believe the Federal Reserve will raise interest rates at its meeting to be held toward the end of this month. Some analysts are predicting that the 30-year Treasury bond yield will move up more than a percentage point from where it is now. Stocks, and particularly those that tend to sell at high price-earnings ratios (or at no PE whatsoever, if they belong to the category of Internut stocks), are dropping on the simplistic notion that higher interest rates dictate lower stock prices. SanDisk fits into this scenario. In other words, there is nothing in the way of weakness in earnings prospects, but there are plenty of economic factors that would cause a drop in the price of all stocks. |
