Sunday, January 15, 2012

US stock comment: Sodden stock of SanDisk good company

  Introduction: Print article says Marke the most popular selling dog stairs tWatch now, as a result of science and technology whole goes up situation, the share price with current SanDisk already from March 9 7.65 rose one times above. If we at that time average this, it is economical undoubtedly, can obtain the benefit of 130% to get, but the when the river rises the boat goes up too of the market has made now,this company draped the hopeful appearance that does not belong to them, and long-term reality does not have a change, can come back to bring to bear on to the price afresh after all of de dog crates large best buy finitive impact.



Since at the beginning of March go up situation since beginning, science and technology it is the market is the strongest all the time board piece one of, to the end of July when, 2000 a little bit are crossed first since they had driven Na Sida to overcom dvd discovery best buy e month of aggregate index close nine. Just we must see, in science and technology go up in situation, a lot of main area cases that get the person that go up are very doubtful, but as a result of rebou the most popular selling dog crates large nding cause, their price promoted greatly.



If some kind of change produces on the market, make science and technology ongoi dvd discovery 3 ng footstep becomes hard rise, so, those lack the share certificate of truly solid base and competitive advantage, be afraid be about rapid tune. Change character, even if investor values science and technology now, we also must choose carefully, determining what share is unmatchable of the tide that transforms possibly in the future. modern dining chairs



SanDisk(SNDK) very resembling is a such stocks, it also became us accordingly what Ben Zhouyu clumsy invests is selected person. Column of weekly and foolish investment the original intention that found depends on discovering those do not suit to come loose the collective character that the investment target place of an investor has, when encountering similar investment again in the future so, we are OK and easy avoid. Such column be should not regard what sell mark giving message directly as simply.



SanDisk is industry shines bannerly put a product to produce one of business, their product applies extensively at camera of radiophone, number, with etc all sorts of portable apparatus. This proponent may emphasize, it is so good now that the foreground of the company never resembles. In July the last ten-day of a month, this company announces, between season of the 3rd money, they realized the gain of 68 million dollar, this makes analysts astonied, have to see them high. Want to know, advanced among 3 months, they return loss 165 million dollar. Between season of this one money, company sale grows 11% , battalion closes reached 731 million dollar.



Shine keeping the market is the long-term heavy disaster area before actually, because here competition extreme is intense, price war cans be found everywhere. Now, the circumstance appears to had been improved somewhat, the price counterpoises to be being returned to, this comes is the cause that reduces because of crop, 2 coming also is the demand growth that brings up because of all sorts of new electron products. SanDisk also cut their manufacturing cost greatly.



Nevertheless, more or less did good news get a bit dilute, because this company shows between statement, sale of their predicting summer will relatively before one money year the corresponding period glides 1% , such expression although still the money season before feel well, but still make a few analysts feel malcontent. Immediately of company high level expresses, they predict to shine put the price to also be defended nevertheless at most at present position just, and be in actually 2009 the rest of among time, reduce completely likely somewhat.



   Supply demand relations



SanDisk, beautiful optical science and technology (MU) and SamSung electron shine put a company to make his oldest enemy completely possibly. Because the requirement that impose soars greatly among the 2nd quarter, they will promote their crop considerably, and the supply demand relations on market of latter and apparent will apparent change, accompany supply dog crates large dogs addition, the price can be squelched necessarily, the outstanding achievement of these enterprises and their competition ability also can be harmed. Because show Cun Mou to plant,this also is actually on certain level say to had made a kind of general goods on the meaning, the product that who people buys basically has depended on no longer technology, depend on however the price. SanDisk still has definite technical advantage probably, but this can't resist apparently the effect that the climate change that whole industry will encounter causes.

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When our focusing the main area of this company, we can discover operation profit is disappearing, and operation deficit emerges however in us at the moment, even if just end money season somewhat strong, but unalterable whole money year panoramic. Because,the deficit history of this company is not met of season of a money behave and be obliterated thoroughly.



In the footing of investor, problem actually very simple also, it is this current small is long-term go situation.



The answer is negative apparently.



Although sale is current money season relatively season of before one money increases somewhat, but year after year is compared, still show the trend that drops for a long time however, below the circumstance that does not master price power in this industry, this one trend is very difficult change. The financial standing of SanDisk also is only flatly just, at hand is mastering the cash of 1.6 billion dollar and short-term investment, and short-term debt also has 1.2 billion dollar.



   When the river rises the boat goes up too



In short, even if this is a good company, complete also likelihood is a sodden stock, mere from share price have st dvd discovery 4 h in mind it is such. As a result of science and technology whole goes up situation, the share price with current SanDisk already from March 9 7.65 rose one times above. If we at that time average this, it is economical undoubtedly, can obtain the benefit of 130% to get, can you be now?



For instance, daystar company is the fair value of this assess to be 18 dollars, had been its current price roughly. The price of 6 months target that Zacks.com fixes for it is 10 dollars, relative to present share price, this can have been regarded actually sell the grade that give. The Braun of Sabrient Systems (David Brown) is call a spade a spade more, say standard of this share price is too high, make it became to sell the target that give, had been in now " strong sell a division " the brim.



In the final analysis, still be the problem of that good company and sodden stock. To SanDisk, the when the river rises the boat goes up too of the market has made this company draped th dog stairs best buy e hopeful appearance that does not belong to them, and long-term reality does not have a change, can come back to bring to bear on to the price afresh after all of definitive impact.



"Want to prove current price is reasonable, the battalion of SanDisk closes in future 15 years must amount to manhood all co dog crates large mpound growth the target of 15% , meanwhile, still must reach section on one money is annual of the bottom - the capital investment return rate of 25% is in the improvement inside 15 years 10% . " the plain accept of research of Nash dimension Er and analytic company New Constructs (David Trainer) expresses, in their eye, this is " dangerous stock " .



"The rose to had caused themselves to clear without ability tremendous barrier of this kind of share price, very difficult like them him promotion profit margin is same. " plain accept complements, "It is under this kind of circumstance, the obstacle before them can bigger and bigger. Because of this, we think this price is exorbitant really, investor place is faced with drop the latent capacity that the risk rises more than far apparently. Investor place is faced with drop the latent capacity that the risk rises more than far apparently..



This returns the share in surf now namely, once tide produces any change, it will confront disaster.



(Article author: Chuck Jaffe)

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