>>On Wednesday and Thursday, Deutsche Bank (NYSE: DB; LSE: DBK; XETRA, AEX, SWX, ATX: DBKG) will hold a conference of companies in London, in which M-Systems Flash Disk Pioneers (Nasdaq: FLSH) will also participate. Another importance conference of communications equipment manufacturers will be held in Boston by Credit Suisse First Boston.
Yesterday, analyst Craig Ellis of Salomon Smith Barney today upgraded M-Systems and Sandisk CP (NasdaqNM: SNDK) from "Hold" to "Buy", thereby completing an amazing mountain ride in his ratings for M-Systems. He started two years ago in June with a dramatic "Sell" rating and a target price of $15 a share. He then revised this to "Hold", apparently in response to the criticism he received, and in July last year he upped his rating again, to "Buy", with a target price of $33 a share. Ellis returned to "Hold" last October, and today he once again gave the stock a "Buy" rating and a target price of $38 a share. The share is currently traded at $12 lower than this price.
As I see it, throughout this period M-Systems has not experienced any slalom-like trends in its business activities, but rather, it has posted consistent growth in sales and profits. These waves might be good for short sellers and brokers wishing to earn commissions, but they are devastating for the small investor who prefers the "buy and hold" approach, that is, they want to buy in and stay put. In January, the short position for Sandisk jumped 48% and for M-Systems 17% to 2.3 million shares. >> http://www.globes.co.il/serveen//globes/docView.asp?did=1000066556&fid=1176