RE: I think the shorts are basing their decisions on market gossip of the sort that comes from people who have little understanding of the technology and the markets served by that technology
Several posts ago, you described SNDK's weakness as interest rate fears. Now you think "shorts are basing their decisions on market gossip"?
Hopefully, you know that shorting is incredibly "risky" since one faces a finite gain yet an infinite loss. In fact, Academia has concluded that shorting is primarily performed by professionals or "experts". Moreover, whenever short interest increases above 10%, that should be a warning sign to anyone who is thinking about initiating a position in a stock.
Although the CEO does not believe that "DRAMification" will not happen to SNDK, just take a look at the financial statements and guidance. Revenes are increasing, margins are decreasing. That, precisely, is what happened to the DRAM industry.
RE: SanDisk has not provided any guidance to correct its conservative, but optimistic earlier prediction on earnings for this quarter. That alone suggests that fears of oversupply and attendant pricing pressures are exaggerated
As far as I can tell, SNDK has not updated its earlier guidance. It has already been stated eloquently by another poster that SNDK MGMT is under no obligation to "update" their guidance. Your conclusion regarding "fears of oversupply" is erroneous and premature since:
1. The 2nd Quarter numbers are not out, yet.
2. It is well known that additonal capacity is coming on line by competitors.
If you are "in love" or "passionate" about SanDisk, so be it. But, from what you've posted to me and others, you have absolutely no clue about basic or even higher level Finance. |
