SNDK has a thin float. Any decent increase in "demand", really drives the stock up. With strong fundamentals, a growing market, and nearly 90% of the market, the selling pressures have not been that strong or frequent.
The current PE is high (60) because of the strong earnings growth expected, especially during the next two quarters.
Management owns nearly 50% of the stock. Seagate owns about 25%. I like this!!!
ML also seems to be on a strong roll lately, as many of their recommendations have performed very well. I don't use a broker, and I usually don't "listen" to them, but in this case, I agree that SNDK should be looked at, and soon. Although it has begun to get national attention, its shareholder base is relatively small. I see this changing fast in the next 30-60 days. And when this happens, you could see a pretty strong momentum run, further driving the stock up.
Good Trading. JMO LF |
