Jim,
<<Would anyone care to speculate as to the cause of this bonanza? Could it all be due to the general chip run-up?>>
I think it's fair to say that we've been "discovered", to understate somewhat. Part of it has to do with the general chip runup, but part of it I think has to do with the supply/demand imbalance in flash in particular. This has gotten a fair bit of publicity right now. I own some Contract Manufacturing stocks, and the leader of that group, SLR, has gotten hurt explicitly for that reason, that there is a scarcity of flash that has inhibited full scale manufacturing. When people hear about that, they look for leaders, and they run right into Sandisk. And when they investigate the company, they find a great story, a running stock price, and, compared to hot sector leading companies like NTAP and VRTS at least, a relatively low valuation ("only" about 8 billion). I know it sounds crazy to say this, and I have to feel my forehead when I write and look around to make sure that men in white suits aren't coming up the walkway, but I think we might in for another double from here over the next few months, and maybe sooner, barring a general tech G-span induced malaise.
Then again, I may actually be in a desert somewhere hallucinating, and I just need to come down from whatever it was that I ingested, or get some water, quick.
Merrily and nervously,
Sam |
