Aus,
The underwriters are positioning the stock right now, talking to their well heeled, favored clients who will buy if they want to get a piece of the other soaring IPOs that have come out, whether they want to buy it or not. What will happen after the secondary is anyone's guess. I know one person who says that one of his primary rules is "Never buy secondaries". The last secondary that SNDK did was a bust in the aftermarket, for sure; it took almost two years for the stock to appreciate meaningfully over the secondary price.
However, I don't think that this one will be quite like that one, though there may be something of a correction after it gets off. Then again, I've been predicting a correction for SNDK for several months now. What a great timer, eh? Lucky for me I keep a core position in stocks like this one no matter what my "feelings" about the stock are, that's why. However, I think that there is at least one more parabolic move in Sandisk (and perhaps more than that). I won't hazard a guess on when it might come though.
Regards,
Sam |
