SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : WDC/Sandisk Corporation
WDC 250.32-10.1%Jan 30 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: amoezzi who wrote (24831)2/4/2004 3:01:04 PM
From: Art Bechhoefer  Read Replies (2) of 60323
 
amoezzi--The reason why I give a low priority to technical analysis is that it is too limited to make it worthwhile for me to spend time using it. Here's what I mean.

TA is basically trend analysis. There is little theory here and mostly rules of thumb based on historic patterns. The accuracy of trend projections is notoriously low once you get a few days or weeks into the future. TA is useful in determining whether a proposed selling or buying level is reasonable, or whether a more suitable price might be found in the near future.

Since I look at long term prospects, and spend a great deal of time monitoring those prospects for some 40 issues, I don't have the time needed to fine tune a decision based on fundamentals.

Concerning SanDisk, the fundamentals remain sound on all three factors I previously mentioned. The reason for the weakness in the shares appears NOT to be related to fears about the impact of additional capacity being created by other companies but by negative comments from Templeton, a well known and respected investment guru, who recently expressed beliefs that many of the stocks in the NASDAQ 100 (including SNDK) were too high. He lumped SNDK with AMZN because both had soared during the last year, but failed to distinguish between the effects of low debt or high debt on investment risk and potential return.

Templeton is 91 and semi retired, and spends most of his time making contributions to charitable organizations--not analyzing stocks.

Art
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News