Craig, being one of the "bears" when the stock was in the $70/$110 area, I think it may be time to slowly start and become positive on SNDK, particularly here, not too far from Book. SNDK, for the one with a longer term horizon, is not too bad a bet (I can possibly find a better one in that space, for instance SSTI might be a little better, but it is not a good idea to have all eggs in on basket). The reason is that they are adding very large capacity which should be coming to full yield, at low cost, I presume by the middle of next year, just as demand should be picking up. I would not be surprised if sales rate would be double the current rate by the end of 2002, then earnings could easily reach the $.75 to $1.25 "annual rate", which the market, in its "wisdom" would then love t buy at a PE of 25 to 35. There might still be a tough stretch here just before Christmas, but after that, I think it should be relatively clear sailing.
Zeev |
