Aus, Hiring Mike Wong from Lexar is really bizarre. I don't know what to make of that.
Right now they are selling all they make so it doesn't make too much difference. But shortly down the road, they are going to have to distance themselves from the competition (Lexar, Delkin, Whoever selling the higher capacity cards). Royalties are nice, but direct sales are better.
What I can't figure out is why, when SNDK is the pioneer, they don't have the higher capacity cards on the market? What are they waiting for, if they are in fact waiting? I would think they would be first on the market with each card.
RE: P.S. You never explained how we got to $94 1/2 just a few weeks back. Is that also just trading volatility?
I don't remember anyone asking. I just printed a chart of SNDK and the SOX (semiconductor index) and overlayed them (13 months). They go lock step almost to the day! Now the magnitude of each move differs but the direction of each turn is the same! Sandisk has more magnitude of movement so it goes further in either direction percent wise. At any rate with all the ups and downs SNDK is ahead percent wise and I think it will distance itself even more to the upside in the next year, but the DIRECTION will pretty much be the same as the SOX.
Which brings us to the SOX and Nasdaq in general. (since you asked). In March everything was out of whack! An aberration. And stocks that had good fundamentals in Tornados and such did even better and were even more out of whack. The March spike was like an earthquake. So what you have been seeing for past 6 months have been the after-shocks and it looks like the on the spike on 9/01/00 was another such aftershock. SNDK peaked one trading day later. And like earths aftershocks, nobody knows when they will occur or what the magnitude will be. So to answer your question, it looks like yes it is trading volatility. I think this behavior will change going into November.
Side note here. They amazing thing to me was that within a day of the March top, if memory serves me right Aus, it was the first time I ever saw you post a suggestion that some might want to actually sell some SNDK stock. Great call! It is too bad that neither one of us took your suggestion at the time, eh.
That's my two cents.
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Steve 667
An Irritating Grain of Sand from which come Pearls....If you wait long enough. |
