Looks like tech will get hit tomorrow morning due to STX's bad report. Doesn't have a whole lot to do with SNDK, in fact it may not even have much to do with the disk drive sector in general--the problem may be company specific, due to some execution problems, but their release was a little ambiguous about it, and I didn't listen to the CC yet for clarification. But they reported a huge increase in receivables (up about 50%), and a 20% increase in inventory. All the DDs as well as SNDK and SSTI, to name just a few stocks, were down in AH, some of them pretty sharply.
There will probably be a rally off the lows later in the day, but MS, I think it was, was pretty confident that STX would hit their numbers and was embarrassed by the miss, so people will be pretty shy going into earnings--I don't expect much strength tomorrow now due to jitters about what the outlook will be. Hope Eli is sharp in the CC.
And optimistic about the coming quarter. Otherwise we'll be down on Thursday too. |
