Sandisk Outperforms in 2009
Why?
| EPS Trends | Current Qtr Dec-09 |
Next Qtr Mar-10 |
Current Year Dec-09 |
Next Year Dec-10 |
| Current Estimate | 0.66 | 0.23 | 1.31 | 1.32 |
| 7 Days Ago | 0.66 | 0.23 | 1.31 | 1.32 |
| 30 Days Ago | 0.66 | 0.23 | 1.31 | 1.30 |
| 60 Days Ago | 0.18 | 0.02 | 0.32 | 0.46 |
| 90 Days Ago | 0.12 | -0.01 | 0.22 | 0.36 |
Look at those analyst revisions and you can see why. Earnings revisions are one of the more reliable indicators to price over the next 6-9mths. Analysts are slow to increase their targets and the new expectations are slowly adopted. The low of the 2010 range of $0.40 to $2.18 may simply be a firm without an analyst currently covering SNDK.
Q3 Conference Call read Eli at least. Note the success of the OEM push and the diversification of the business model on top of the growth it has bought. That was a good strategic decision they made last year.
Here’s the income statement for the big loss in Q4 2008.
Top Tech Stock of 2009, Sandisk is forth. Tech is leading sector followed by materials and consumer discretionary. Can we chalk that up as a win for sector rotation? I think so. No matter what happens with this recovery the market action over the last nine months has reflected a growing optimism for an economic recovery and tech has lead.
Though as some say, it a market of stocks not a stock market. The majority of my gains this year came from sectors that underperformed the S&P 500. Though as always I have a large allocation to tech in the US.
Disclosure: Long $10 SNDK Calls.
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