Monday, November 13, 2006

Standout Stocks

My Stock of the Day is SanDisk (SNDK).

The stock is down today on an analyst downgrade by UBS. The analyst's thesis is that NAND oversupply is coming, and that will hurt SNDK EPS. He also states that demand from new products that use flash memory is decelerating.

I disagree with his thesis. The company said on their last conference call that the upcoming holiday season would be strong. I also think that the stock is oversold here, and this downgrade is coming too late. At 16x forward earnings, I am closer to adding to my positions than selling.

Other stocks moving on above-average volume include:

  • LQDT
  • CPA
  • GLYT
  • BIDU
  • WTS
  • CHDX
  • ALOG
  • ILMN
  • ITG
  • GDP
  • PCU
  • TCK

long ILMN


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