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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (3170)	7/13/2000 11:10:03 AM
From: mishedlo	Read Replies (1) \| Respond to of 30051

Rambus strong here Zeev If I was short I would be fearful of News right now Turnips changed?

To: Zeev Hed who wrote (3170)	7/13/2000 11:17:08 AM
From: Steve Lee	Read Replies (1) \| Respond to of 30051

Zeev, I'm expecting a nice little run on SNDK now. It has gone from 61 to 70 since yesterday. A good way to play wireless, Palm and digital cameras. Of course your advice on possible overcapacity in the chip industry are wise. SNDK should be more immune to this than most because they get the royalties from CompactFlash, MMC and SecureDigital. Also, Sandisk made a huge gain from their investment in USIC/UMC so have essentially gained a good portion of extra capacity for "free". Also looks like they will be prevailing in their case against Lexar (from the wording of Lexar's SEC filing which all but admits patent violation). Last Q EPS was 0.21 with a prediction of 0.22 for this Q (Jun 00). They only need to make 0.23 and 0.24 in the following 2 Q's to beat consensus estimates. With last reported EPS figures showing 171% growth this should be no problem. And the clincher is, Seagate's sale of SNDK has seriously pressured stock performance. They sold 14 million shares (about 20% of the company) in the first half of this year. This morning's SEC filing from Seg shows that as of Jun 30, they only had about a million SNDK shares left to sell, some of which are likely to have been sold this month. I'm looking for low 90's within a couple of weeks. Bought August 70 calls between $8 and $9 today. Edit - Plus on a technical note: Not far above the lower trendline formed by joining the lows of November last year and May this year. Massive and sustained increase in volume since the May lows leading up to this recovery. Your technical read after today's action would be appreciated.