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 (55892)	4/4/2012 11:33:58 AM
From: Donald Wennerstrom	2 Recommendations Read Replies (1) \| Respond to of 95611

S&P has not been as harsh as Wedbush in their assessment of the SNDK announcement. <<S&P MAINTAINS BUY RECOMMENDATION ON SHARES OF SANDISK 7:52 AM ET 4/4/12 \| S&P Marketscope SNDK provides Q1 sales update of $1.2B, vs. $1.3B-$1.35B previously and below our $1.32B view. We attribute the revenue and gross margin miss to lower than anticipated volume as well as pricing pressure. Despite the lowered guidance, we still see SNDK benefiting from flash secular growth, and see less pronounced pricing pressure as demand rebounds in Q2 assuming a fairly healthy supply/demand picture. Shifting to operating estimates from GAAP, we keep our '12 estimate at $4.45 but trim '13's by $0.27 to $5.11. We maintain our 12-month target price of $58, on a P/E below peers.