Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (40332)	9/21/2008 5:27:46 PM
From: Donald Wennerstrom	1 Recommendation Read Replies (2) \| Respond to of 95761

September 19, 2008, 1:51 pm Toshiba Chops Outlook; Would They Really Bid For SNDK? Posted by Eric Savitz In case you happen to think that Toshiba is going to outbid Samsung for SanDisk (SNDK), you ought to take note of the company’s currently grim view of the NAND flash memory market. In fact, as Bloomberg reports, Toshiba today cut its full-year net income forecast for the March 31 2009 fiscal year by 46 percent to 70 billion yen, which would be a four-year low. The company also cut its sales projection by 3.8% to 7.7 trillion yen, and its operating profit forecast by 48% to 105 billion yen. Toshiba is the world’s second-largest producer of NAND flash memory chips. The company said its semiconductor division will lose 65 billion yen for the year due to weak NAND pricing. Already this year, the company said, NAND prices have dropped 52%. The company expects the memory business to improve to break-even in the second half of the fiscal year. There has been significant speculation on the Street that Toshiba might outbid Samsung for SanDisk, given the Toshiba/SanDisk joint venture in NAND production. But analysts also have pointed out that Toshiba has a highly leveraged balance sheet and might have difficulty raising the capital for a SanDisk bid. SNDK today is up 44 cents, or 2%, to $22.93. SanDisk this week rejected a $26-a-share cash bid from Samsung as too low.