Cooters, in regard to why SNDK would go down, I don't know, but here is what I wrote in part to my clients:
KODAK announced weaker film sales would reduce third quarter profits by some 15 percent. EK shares, like INTC, were trading around 60 and promptly fell to the low 40's. Kodak officials could not explain the slower film sales but thought it might be due to retail dealers maintaining lower inventory levels. But another explanation could be that a growing number of amateur and hobbyist photographers who take hundreds of photos every year are switching to digital. Sales of digital cameras are up about 300 percent over last year. Even more important, digital camera buyers are generally those who would ordinarily buy more conventional film than the average occasional user.
THE TREND toward digital represents a structural change in photography and the materials used by photographers. Kodak, though it has attempted to position itself in the digital market, still has no replacement for film. Had the company invested in the technology for digital "film," it could have participated in the huge profit growth that flash memory companies such as SANDISK are now experiencing. Instead, Kodak decided to protect its market for film processing and paper by developing digital products that would encourage consumers to come to photo stores for prints or scanning of digital images. Judging by the number of new color printers for home use, bearing names such as Hewlett Packard, Epson, and Canon, Kodak made the wrong decision. Barring a major change in corporate culture, Kodak stock may not recover for years.
I don't think there's any doubt that SNDK is picking up business went to Kodak in the days of conventional film. Today's action is unfathomable.
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