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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: cubsfan who wrote (4884)	2/2/2009 6:20:26 PM
From: RockyBalboa	Respond to of 6370

I also think that we go way lower now. Let me tell the experience from last night: it happened that the Korean Index gapped down 4 points to 148.5 at the open, like 2.5% which was not unusual and given the shocking export statistics of korea, well "deserved". Alas... the index fully recovered and even went one point into the green to 153 where it resided most of the early session. I felt somewhat unsure so I bought in the money puts. People goosed the stocks up as if these bad news didnt exist and the puts became even cheaper. In the afternoon alas, 4 hours later... the index would fall below the weak opening price, to 147 or so. Looking at the EUR; sandisk, Elan, this was a blueprint of recent trading action, and I bet it would cost traders an avalanche.

To: cubsfan who wrote (4884)	2/2/2009 7:58:39 PM
From: RockyBalboa	Respond to of 6370

UPDATE 4-SanDisk shares fall on outlook, equity offer Mon Feb 2, 2009 7:28pm EST Email \| Print \| Share\| Reprints \| SanDisk shares fall on outlook, equity offer More Business & Investing News... * Sees Q1 rev $475 mln-575 mln, well below Street view * Potential equity offering could dilute shares up to 20% * Q4 loss ex-items $1.65/shr vs Street view loss 60 cents * Q4 rev $864 mln tops Street view $767 mln * Shares fall 16 pct (Adds analyst comment, additional details) By Gabriel Madway SAN FRANCISCO, Feb 2 (Reuters) - Flash memory card maker SanDisk Corp (SNDK.O) warned that current-quarter revenue would fall far short of Wall Street's expectations and said it may undertake an equity offering that could dilute shares by as much as 20 percent. The news drove SanDisk shares down 16 percent in after-hours trading on Monday, after the stock had initially risen on the company's report of higher-than-expected revenue in the fourth quarter. SanDisk, the No. 1 supplier of flash memory-based data storage cards, forecast first-quarter revenue of $475 million to $575 million, missing by far the average analyst estimate of $621 million, according to Reuters Estimates. Caris & Co analyst Betsy Van Hees called the revenue outlook "horrendous." "I think that the anticipation was that things were improving, and clearly by the guide things are not improving," she said. SanDisk also filed a shelf registration statement with the U.S. Securities and Exchange Commission and said it may pursue some form of equity financing this year as a "prudent insurance policy." Chief Financial Officer Judy Bruner said on a conference call that SanDisk has not made a final decision, but estimated an offering of $300 million to $500 million, which at current share prices would represent dilution of 12 to 20 percent. Last year, SanDisk spurned an unsolicited buyout offer from Samsung Electronics Co Ltd (005930.KS) for $26 a share -- more than twice its current share price -- saying the offer undervalued the company. Samsung dropped its bid in October, citing SanDisk's deepening losses and uncertain outlook. Flash memory makers have been hurt by oversupply and falling demand for consumer electronics brought on by the global economic slowdown. MORE JOB CUTS SanDisk forecast non-GAAP operating expenses of $750 million for 2009, achieved in part through a 12 percent employee headcount reduction in the fourth quarter, a freeze on salary increases and an elimination of bonus payments. The company has 3,000 employees and had in December said it expected to cut 10 percent of its workforce. SanDisk lowered its 2009 capital investment forecast to $500 million for 2009, from $1.6 billion invested in 2008. "We believe that drastic industrywide capital expenditure cuts announced for 2009 will contribute to a better balance between supply and demand and an improved pricing environment in our markets later in 2009 and into 2010," Chief Executive Eli Harari said in a statement. In December, SanDisk announced a temporary production cut at its manufacturing facilities in Japan to deal with projected 2009 demand. SanDisk's net loss in the fourth quarter ended Dec. 28 was $1.86 billion, or $8.25 a share, versus a net profit of $105.9 million, or 45 cents a share, in the year-ago period. The latest results included a combined pretax goodwill and intangible asset impairment charge of $1.02 billion due to a decline in its market capitalization. Excluding that and other items, SanDisk posted a loss of $1.65 a share. Analysts were expecting a loss of 60 cents a share, according to Reuters Estimates. Revenue in the period tumbled 31 percent to $863.9 million, but was above Wall Street's estimate of $766.8 million. The company said its average price per megabyte sold in the fourth quarter fell 70 percent from a year earlier, or down 31 percent from the third quarter. At the Consumer Electronics Show in January, SanDisk introduced a family of fast solid-state hard drives designed as drop-in replacements for hard disk drives in notebook computers [ID:nN08250468]. It also unveiled a portable music system based on memory cards preloaded with songs. [ID:nN07475098] Shares of Milpitas, California-based SanDisk fell to $9.45 in extended trading from their regular-session close of $11.28. The stock has fallen around 60 percent from a year ago. (Reporting by Gabriel Madway; Editing by Tim Dobbyn, Richard Chang, Gary Hill) (gabriel.madway@thomsonreuters.com; +1 415 677 2536)