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

To: marc ultra who wrote (48645)	7/23/2010 12:57:09 AM
From: Sam	3 Recommendations Respond to of 95561

It was posted on the Sandisk board, I believe. Their reasoning is wrong: "Investors should sell bullish SanDisk Corp. options because slowing demand signals that the biggest maker of flash-memory cards won’t extend gains after more than doubling in a year, JPMorgan Chase & Co. said." Demand isn't slowing, they said in their CC. Instead, they are capacity constrained, unable to fully meet demand. So they just had a very good quarter instead of a monster quarter, and will be using non-captive sources (previously negotiated as part of their L&R agreements with Toshiba, Hynix and Samsung) of supply in Q4 in order to at least partially meet their customers' needs. They say that they will sacrifice some margin by doing that, but still expect margins to be in the mid-40s.