On a note out by GSCO analyst today , they have a short position in SNDK (stop loss $74 , potential cover @ $42 )
Goldman Update 4/12 AM
CHANGES: We are adding a short position in SanDisk (SNDK, U/N) to our
catalyst-based portfolio with a potential 31% return to fair value of $42. Our
stop-loss is $74, or 23% above the current share price of $60. Reasons to sell
SanDisk: (1) We expect management will lower 2Q 2006 EPS guidance on 1Q
conference call, scheduled for April 20; (2) NAND spot prices have dropped 55%
YTD and we expect prices to fall further in 2006; (3) incremental demand from
falling prices will not be enough to soak up excess supply. Consensus EPS estimates
appear to incorporate an overly optimistic picture of NAND contract prices and the
value of royalty income. Jim Covello, the covering analyst, rates the stock U/N.